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While nothing is without risks, generally speaking investing in private business that produce actual goods where the supply chain is stable, or real estate so long as it continues to enjoy its advantageous tax loopholes. Those are the only comparable things that currently have a rate of return on inflation that I've found that come to mind with manageable risk assuming proper due dilligence.

Real estate requires a certain level of income to take advantage of those tax loopholes in the first place. Its also still at the height of the market, so opportunities will be coming available as that bubble deflates but you generally don't want to catch a falling knife. I'm personally expecting about a 15% correction, factoring in a minimum of 12% inflation over the next several years based on the 1983 methodology for calculating inflation.

Business risk due to inflation is going to become problematic if you can't control input cost. The operating budgets for many businesses also typically are funded on a variable interest rate loan which will stress many businesses which may present some opportunities in the near future.

Most budgets I've seen have not been factoring in the rate of inflation, but with two years of excessively high inflation and more expected in the future, anyone that knows what they are doing will be factoring this into their prices moving forward for the near term.

Edit: Regarding computational models (AI) and investing, they really aren't a good fit for a lot of things, primarily because there is no determinism properties (system's theory). Any time you have inputs with multiple potential outcomes, this property breaks; and Automata & CS Computation theory say computers will never be able to solve these fundamentally due to the halting or decidability problems. Anywhere human psychology plays a significant role in the outcome, you often have these issues which may not be immediately visible.

Approximations can be made, but there is no guarantee they will be accurate. You also can run into synchronization issues when you have many interconnecting systems (i.e. Dragon King Events).

Standard Disclaimer, not financial advice or accounting advice.



yep, those ideas will be hard to model indeed...




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