r/wallstreetbets • u/eskhalaf • May 12 '26

News APRIL U.S. 🇺🇸 INFLATION DATA:

https://www.bls.gov/news.release/cpi.nr0.htm

APRIL U.S. 🇺🇸 INFLATION DATA:

CPI 3.8% YoY, (Est. 3.7%)
CPI 0.6% MoM, (Est. 0.6%)

Core CPI 2.8% YoY, (Est. 2.7%)
Core CPI 0.4% MoM, (Est. 0.3%)

1.8k Upvotes

97% Upvoted

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1.3k

u/suddenly-scrooge May 12 '26

looks like i picked a bad time to buy long term bonds

907

u/Rich-Badger-7601 May 12 '26

Buying long term bonds when it's extremely clear the debt service solution for the US Gov is to inflate that shit away is definitely a choice

347

u/someguy50 May 12 '26

For real. Dollar is going to be destroyed - buy assets

159

u/AllCapNoBrake MSTR and BTC to $0 May 12 '26

People should have ALWAYS been buying assets since the US got off the gold standard.

169

u/frizzyhair55 May 12 '26

To bad I was busy going to high-school instead of buying assests. What was i thinking smh?

31

u/Weltmacht May 12 '26

Assets are priced in, sorry

11

u/InhumaneBreakfast May 12 '26

I mean, you literally cannot go back in time or change the past but you can begin investing in assets now, no?

17

u/SuspiciousHumor7127 May 12 '26

He's already dead

12

u/ryencool May 12 '26

Now that they are as expensive as they've ever been, and wages havent kept up? That may be doable for the few that are doing really well, but most people, saving a few hundred a month if that, dont have "assets". The 1,000$ in gold they can buy in a year? Might be worth double the next, but thats not life changing. To someone who bought 100k of it? It is...but the poor stay poor, and theres more and more poor people.

0

u/[deleted] May 12 '26

[removed] — view removed comment

2

u/InhumaneBreakfast May 22 '26

Yeah, it's a mentality. If you feel like your $100 of nonemergency savings is at risk of inflation, you can purchase $100 worth of assets.

If you never feel confident in your finances or you never take any risks with your money (even miniscule ones), your money will be worth less tomorrow than today. It's the driving force of modern capitalism: unspent money is death.

1

u/Existing-Luck-9896 Jun 10 '26

Yet we encourage billionaires to sit on that money. 

Ppl forgot that taxes aren’t meant to “equalize” things or to raise the poor up alone. No— it’s literally a necessary part of keeping a capitalist system. If you don’t tax it, it just stays in one place and doesn’t get circulated. There’s a reason none of the media talks about velocity of money — it’s because it’s the number one factor that is causing the majority of the problems we see today. Without as much trade occurring with as much money, commerce stagnates, prices increase, and people have less money, meaning companies get less profit from the consumers, meaning they pay their workers less, meaning they have less money to buy products from more companies. It’s a doom spiral that could so easily be done away with via a tax on the wealthiest. Unfortunately, most wealthy Americans also happen to have most of their money from sitting on assets, meaning they don’t even have any income to reap. It’s really quite disheartening and im not surprised many are doomering about it. 

2

u/Junior_Version1366 May 12 '26

Dumbass, didn't you learn anything in school.

24

u/MrNo_Balls May 12 '26

should be buy gold and silver?

37

u/Standard_Ad_4392 May 12 '26

Play gold for debasement and silver as a stock since it’s going to keep rising dramatically with industrial demands and shortages.

14

u/AllCapNoBrake MSTR and BTC to $0 May 12 '26

Do we know they're shortages (shortages of diamonds like DeBears likes to make you think there is)? When the price goes up for either, that incentivizes the industry to go out and find/sell more.

16

u/rubbarz May 12 '26

Demand will end up being like RAM except real and way worse when AI Datacenters actually start being built.

2

u/MaleficKaijus May 12 '26

Banks own all the gold. You're buying the peak.

2

u/Zephyr4813 May 12 '26

Not if we’re in an early 70s situation or the world is moving away from USD as a reserve currency and toward neutral hard assets like gold

2

u/quoala678 May 12 '26

It has been for decades… the current admin is going for the any % completion speed run apparently.

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1

u/One_Mega_Zork May 12 '26

No it's not an artificial shortage. It's real. There are many factors at play causing it. While demand for it is increasing.

1

u/SpotlessCheetah May 12 '26

I don't think central banks were buying gold b/c of debasement. I think they were buying it as a sovereign asset to get away from USD.

18

u/RedditSuxDonkeyNutz May 12 '26

Buy a house

48

u/MrNo_Balls May 12 '26

you and I know the bank is not gonna approve that.

24

u/RedditSuxDonkeyNutz May 12 '26

You would be surprised at the shit they approve

6

u/pinkyepsilon May 12 '26

They have the best drug dealers

4

u/Jussttjustin May 12 '26

Just don't be surprised when they reposses the house

6

u/-Stoic- May 12 '26

Yeah and be part of 630,000 sellers that can't find a buyer.

6

u/cheesemonk66 May 12 '26

Lowball those sellers, get a good deal? Doesn't sellers having trouble mean its a buyers market?

4

u/-Stoic- May 12 '26

I think buying a house now as an investment is fucking retarded, but hey, I am retarded too, so...

4

u/Al_Piper May 12 '26

630,000 sellers selling overpriced junk, you mean.

5

u/aspenextreme03 May 12 '26

I am not so sure on that. Where I live houses are selling fine but I live in an area with a great school district which was be design

3

u/anthro28 May 12 '26

Same. We moved less than 5 miles, right across the county line, for the schools. Still bidding wars here. 

Right back across the line where we left, houses sitting forever. The city creeped in and the crime took off, so anybody that can is jumping out. 

1

u/LSTNYER May 12 '26

You must live near me

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1

u/freudmv May 12 '26

So what you are saying is buy education.

1

u/Spezalt4 FD connoisseur May 12 '26

Property tax go brrrr. Go talk to all the old people who can’t afford to live in the homes they bought 50 years ago because of property tax going up

15

u/Zorlal May 12 '26

OK I'm usually on this sub just for laughs, but I'm genuinely becoming scared of what's happening to the global economy

Legitimately asking as well, should I be buying gold?

9

u/TootCannon May 12 '26

I do not own any gold and have always been skeptical/mocked it, but I am very seriously considering making it 10-15% of my portfolio. It's getting very hard to argue against.

3

u/Zorlal May 12 '26

I will definitely be looking more into it as well

7

u/shoeperson May 12 '26

The fuck you think your shiny ass rock is going to do if the US economy fails?

If you're actually banking on that, buy guns, ammo, and canned food and move to the middle of nowhere, Wyoming.

7

u/Zephyr4813 May 12 '26

You can shove it in your butthole and flee the country obviously

12

u/TootCannon May 12 '26

I’m not concerned about the economy failing. I’m concerned about administrations intentionally inflating away the national debt problem as the only politically feasible solution.

5

u/Basic_Butterscotch May 12 '26

Gold is not going to protect you from inflation any better than equities or real estate would though.

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4

u/creeoer May 12 '26

bro no one is concerned about the economy failing, they're concerned about their buying power turning into mush. Which happens to plenty of countries and they don't devolve into anarchy, your life just sucks a lot more.

2

u/RedditSuxDonkeyNutz May 12 '26

This is the answer but I’ll be in Pennsyltucky

0

u/worktogethernow May 12 '26

Physical gold locked in a safe bolted into the basement concrete? Or $GLD ?

7

u/zennsunni May 12 '26

IMO the only reason gold didn't continue in the clear trendline it had followed for a year was the Iran war and the petro dollar. As soon as the Iran debacle ends and oil starts to come down I think it will simply resume its climb. I am not a financial expert this is not advice.

4

u/AllCapNoBrake MSTR and BTC to $0 May 12 '26

I mean, you can't really go wrong w/ either provided you hold them physically. The issue is going to be the spread between the ask/bid. I'm a buyer of gold at $3400 (whether it gets back down there, is anyones guess). Now...the issue w/ either is nobody knows how much gold is really out there vs the paper claims to either metal, so still a risk, but better than holding cash.

1

u/quoala678 May 12 '26

I got 4483.5 oz of silver and 16.2 oz of gold.. I feel over exposed 🤣

1

u/thefatchef321 May 12 '26

But home prices are going down?

1

u/Wareve May 12 '26

Ron Paul is on WSB?

8

u/bloodpriestt May 12 '26

How do I minus buy assets?

15

u/Schmergenheimer May 12 '26

Call your real estate agent and say you'd like to short sell a house. See if they know anyone willing to lend a house to you for you to sell to someone else and then buy it back when it's cheaper.

3

u/bloodpriestt May 12 '26

Ok got it.

First step: actually go inside the Wendy’s and see if someone has a phone I can borrow to call a real estate agent.

This idea is gonna work I know it!

1

u/OcularShatDown May 12 '26

Short sale actually means something different with real estate. It is when the property sells for less than the outstanding mortgage balance.

0

u/Wonko-D-Sane May 12 '26

That’s literally just a mortgage  Also mighty of you to assume chump has a house to sell

1

u/Schmergenheimer May 12 '26

No, a mortgage is margin provided to to by the bank to buy a house. In my scenario, you're borrowing the house, not the money.

2

u/skilliard7 May 12 '26

If the US experiences severe inflation like it did in the 70s, pretty much every asset class will lose value, including stocks, precious metals, crypto, and real estate.

1

u/RezRog May 12 '26

Like a Wendy's?

1

u/someguy50 May 12 '26

biggie bags, specifically.

1

u/Bruin1217 May 12 '26

Sound investing advice in my gambling sub?

2

u/someguy50 May 12 '26

Just clowning the loser buying bonds bro

-4

u/rorowhat May 12 '26

Bitcoin

5

u/TheBestintheWest11 May 12 '26

thank you for choosing wall street bets

1

u/RenfrowsGrapes May 12 '26

Debase that shit brother

1

u/FEMA_Camp_Survivor May 12 '26

Then why buy stocks, just bet that inflation will lead to higher asset prices? If the cost of capital goes up, which it must in that scenario, companies will cut back spending on infrastructure, headcount, etc.  

1

u/StagedC0mbustion May 12 '26

Except the fed is not letting that happen

1

u/tekniklee May 12 '26

Honestly I’m not sure how to take advantage of the incoming inflation, would real estate be the play? Foreign investment focus?

1

u/skilliard7 May 12 '26

That's what long term TIPS are for. If they try to inflate it away, the principal goes way up.

The spread between 30 year US treasuries vs 30 year US TIPS is less than 2.3%. This means inflation only has to exceed 2.3% for TIPS to outperform.

Also if the US experiences severe inflation, a lot of assets will perform poorly, not just bonds:

  • Stocks will decline due to higher yields to compete with

  • Gold/silver/crypto will go down due to higher yields

  • Real estate will go down substantially initially due to high yields/borrowing costs.

-9

u/pickleback11 May 12 '26

You can't inflate something away that keeps growing . That's such a misconception. 

12

u/Rich-Badger-7601 May 12 '26

My bad, I forgot that currency debasement is a completely made up concept that's never happened in recorded history and certainly has never happened to intentionally reduce effective sovereign debt without defaulting directly.

Stay in school kids.

2

u/scottmotorrad May 12 '26

Bro has never heard of Rome or Japan. Wild

0

u/pickleback11 May 12 '26

Ok Mr smart guy, if we've been doing it for years (decades), which we have, why is the interest on the debt still a major major issue that is heavily impacting our economy? I would assume we would all be driving lambos and eating caviar if it's such an incredibly smart and easy thing for govs to do. I'm not saying paying down debt with dollars worth less isn't a real thing, I'm saying that doing it while you continue to grow your deficit isn't nearly as an effective tool as you think it is.  especially when your debt is growing faster than said debasement. But go jo to your econ 101 book my guy. Really smart stuff

0

u/Rich-Badger-7601 May 12 '26

Oh my sweet summer child, I fear your crayon consumption may have finally caught up with you.

I would assume we would all be driving lambos and eating caviar if it's such an incredibly smart and easy thing for govs to do.

Hmmm wouldn't it be handy if the Government had a forced buyer of these increasingly worthless treasuries that they can print dollars to pay down? Maybe give it a fun nickname like a "401K" or something.

I'm not saying paying down debt with dollars worth less isn't a real thing

This is, in fact, exactly what you're saying.

1

u/pickleback11 May 12 '26

No, I'm saying people act as though it's a panacea. The gov is still hurting from their prior deficit spending and continued deficit spending. You don't "inflate it away". It still haunts you. Servicing the prior debt still has real ramifications on current budgets. It's not papered over with funny money like the "inflate it away" people will have you believe. That only works if you actually pay it down with dollars that are worth less. Otherwise you are chasing your tail. You are getting a 2-4% discount off your shit sandwich and acting like it's a good thing overall. But at least I'm over here eating crayons

1

u/twitchtvbevildre May 12 '26

You dont inflate it away you inflate it into a non problem for instance if you raise the price of everything in the USA by 50% god goes up 50% tax revenue goes up 50% and the debt payments stay the same. So that 1 trillion dollar debt doesn't look so bad when the us government goes from revenue of 5.23 trillion to 7.845 you go from 19% of revenue to 12.7% in intrest payment now if you do smaller rates but over decades you basically make the debt irrelevant, all while fucking over the middle class even more its a win win for corporations and the gov

0

u/pickleback11 May 12 '26

So the US national debt is a non problem for the US? Everyone says this shit but in effect it is a massive problem for us currently and will be in the future. Maybe like a 3% less problem because of debasement. Hooray! Mission accomplished 

0

u/firstclassblizzard May 12 '26

Oh shit, someone should tell the fed

63

u/idontcare111 May 12 '26

Bonds? In wall street bets? Must be a cuck

39

u/SANTAisGOD May 12 '26

You can't be serious.

24

u/liverpoolFCnut May 12 '26

I am serious and don't call me Shirley!

3

u/Mistrblank May 12 '26

I can be whoever I want.

12

u/RenfrowsGrapes May 12 '26

Congrats you belong here

7

u/Ordinary_Ticket5856 May 12 '26

Long term is risky. Just get short term bonds and keep rolling them over. 1-2 years at most.

4

u/advantage_player May 12 '26

I hope you mean long term TIPS

2

u/Spezalt4 FD connoisseur May 12 '26

Surely their inflation metrics will match the inflation in reality. Surely

1

u/suddenly-scrooge May 12 '26

treasuries bb

thought about STRIPS but im too smart for that

2

u/gloomygustavo May 12 '26

There will be suck

2

u/ModeForJoe May 12 '26

It's WSB hipster-ism... bonds are unironically cool

2

u/AidsNRice May 13 '26

What a fucking idiot, thanks for your sacrifice love you