Investors worried about inflation in money markets

Investors worried about inflation in money markets

Investors who want to keep their money in money markets from stock volatility are worried about the lurking inflation threat that could erode purchasing power significantly.

On Monday, Schiff voiced his opinion on Twitter, warning investors about the hidden danger of inflation in money markets. Even though money markets provide a 5% return, the actual risk lies in the potential loss of 10%-20% in purchasing power annually due to inflation.

The investor's warning came during a period of turbulent times for the bond market. The Fed's commitment to higher interest rates, as well as a fear of a government shutdown, have resulted in a rise in bond yields.

See also: Fed Holds but signals Hawkish path ahead, Treasury Yields rise: The week in the market.

So, Schiff's latest tweet adds another layer to the ongoing debate about the potential impacts of inflation on investor portfolios and emphasizes the need for investors to consider all risks before making decisions.

A recent report shows that the Federal Reserve's decision to stick with higher interest rates has resulted in a surge in yields across all periods of maturity.

Moody's warning about possible credit implications in the case of a government shutdown has resulted in more uncertainty in the bond market.

Schiff has previously blamed the rise in bond yields and energy prices on Bidenomics and warned and warned that these trends might continue.

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