Matt Dines is co-founder and Chief Investment Officer of Build Asset Management, an asset management firm specializing in strategies focused on fixed income and options. He can be reached at matt@getbuilding.com
While a document search will not turn up the dreaded word “stagflation,” the minutes mention on multiple occasions that the FOMC sees risk to growth skewing toward the downside, and inflation risk to the upside.
Modern economic growth in the U.S. is dependent on credit creation — which has perpetuated a cycle of suppressed yields and inflated asset prices. While credit creation has been accelerating away from GDP growth for the last 15 years with no signs of stopping, retirement investors are left in the intractable situation of watching the value of their savings erode. What can be done?