How to deal with the monetary policy of the third round of quantitative easing

With the restart of the money printing press, inflation will return in the future.

In the past decade, the house, ** is effectively coping with inflation.

But in the next decade, real estate regulation will not be relaxed, and the international ****** has reached $1,700 an ounce.

I think there are a few things worth considering to effectively hedge against inflation:

Bonds: Many of his coupon rates can reach 5-7%, and after deducting 20% tax, there is 4% that can be avoided through transactions).

ICBC**: At present, it is RMB, and the dividends he distributes are rising steadily every year (because his profits are basically increasing every year, if his dividend level falls, then the market interpretation of ICBC's investors will have an adverse impact on the market value of ICBC), according to the annual distribution of 2 yuan for every 10 shares, and 10 shares after tax, then the simple calculation formula of the annual yield is.

The premise of the assumption is to hold ICBC ** for a long time and not buy and sell because of the ups and downs of **.

Of course, there are many wealth management products, including a variety of bank wealth management, brokerage wealth management, and trust products.

**。。。The country's words are simple, as long as the oil is not denominated in dollars, and the national debt is not denominated in dollars, but this is equivalent to turning the other cheek with country M, and there is going to be a war...

At present, the central bank has adopted a main method of reverse repo.

The "quantitative" in "quantitative easing" refers to the amount of money that will be created in a specified amount, while "easing" refers to reducing the financial pressure on banks. Banks use the money they create out of thin air to buy bonds in the open market, lend money to deposit-taking institutions, buy assets from banks, etc. All of this has helped to lower the yield of ** bonds and lower the interbank overnight rate, which has led to a large number of assets that can only earn very low interest rates, and the central hail is expected to make banks more willing to lend to earn returns to ease the financial pressure on the market.

Although quantitative easing monetary policy is conducive to curbing the deterioration of deflationary expectations to a certain extent, it has not played an obvious role in reducing market interest rates and promoting the recovery of the credit supply and sales market, and may bring certain risks to the global economic development in the later stage.

In the first case, if QE is successful, increasing credit**, avoiding deflation, and returning to healthy economic growth, then in general** will outperform bonds.

In the second case, if the quantitative easing policy is excessively implemented, resulting in too much money and inflation returns, then real assets such as **, commodities and real estate may perform better.

Third, if QE fails to produce results and the economy falls into deflation, then traditional ** bonds and other fixed income instruments will be more attractive.

FYI.

Quantitative easing monetary policy, also known as quantitative easing monetary policy, mainly refers to the intervention method in which banks increase the supply of base money and inject a large amount of liquidity into the market by purchasing medium and long-term bonds such as treasury bonds after the implementation of zero interest rate or near-zero interest rate policy.

Extension of Quantitative Easing Monetary Policy:

The ** bonds involved in the quantitative easing policy are not only large in amount, but also have a long period. In general, monetary authorities will only resort to such extremes if conventional tools such as interest rates are no longer effective.

The impact of quantitative easing monetary policy is extended:

1) Quantitative easing monetary policy buries the hidden danger of global inflation.

Quantitative easing monetary policy is essentially to start the money printing machine to inject liquidity into the market when it is divorced from the needs of the real economy. In the absence of market confidence and shrinking investment, the liquidity released by the quantitative easing monetary policy to the market will not lead to inflation, but once the economy improves and investment confidence recovers, the excessive release of liquidity may be transformed into inflation.

2) The economic situation related to the deterioration of quantitative easing monetary policy.

One of the most direct manifestations of the monetary outfiltration policy of quantitative easing is to depreciate the national currency sharply, which is beneficial to the country's export industry, but on the contrary leads to the appreciation of the currencies of the relevant economies.

3) The Fed buys Treasury bonds in large quantities to reduce the value of foreign exchange assets of the corresponding bond-holding countries.

Quantitative easing monetary policy is a very radical policy of political policy, although it is conducive to helping the developed economies in the deep financial crisis to alleviate the credit crunch situation and increase the momentum of economic expansion, but from the perspective of the impact on the global economy, the implementation of quantitative easing monetary policy in the world's major economies, especially the United States, is a beggar-thy-neighbor behavior, which sows the seeds of global inflation, and may lead to the further deterioration of the economy of the export-oriented new economy, the sharp depreciation of foreign exchange reserve assets, and other problems.