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Elon Musks recommendation relating to excessive inflation: personal bodily issues – Kitco NEWS

(Kitco News) Tesla and SpaceX CEO Elon Musk asked Twitter where inflation will be in a few years and advised how to invest when inflation is red-hot. Here’s his take.

“What are your thoughts about probable inflation rate over next few years?” Musk asked the Twitterverse on Sunday.

A very timely question, considering that inflation in the U.S. soared to new 40-year highs in February, with the annual CPI number running at 7.9%.

The main takeaway from the Twitter thread, according to Musk, is to own physical assets over cash.

“As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high,” Musk said.

However, even considering his own advice, Musk admitted that he won’t be selling the cryptocurrencies that he owns, including Bitcoin, Ethereum and Doge. “I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw,” he added.

Musk also pointed out that his companies — Tesla and SpaceX — are seeing “significant” inflation pressures when it comes to raw material and logistics. And they are not the only ones.

MicroStrategy CEO Michael Saylor also weighed in on Musk’s question, stating that he sees inflation remaining elevated, warning that weaker fiat currencies could collapse.

“USD consumer inflation will continue near all time highs, and asset inflation will run at double the rate of consumer inflation. Weaker currencies will collapse, and the flight of capital from cash, debt, & value stocks to scarce property like #bitcoin will intensify,” he said.

Saylor also agreed with the principle that scarce assets are the way to go when inflation is so high.

“Better to own scarce, desirable assets than currency derivatives in times of inflation. We agree on the general principle. The challenge lies in sorting out which things (including physical property, digital property, & corporate equity) are most scarce & desirable over time,” he clarified.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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