WILL WE GET HIGHER INFLATION EVEN THOUGH THE CENTRAL BANKS ARE ACTING AGAINST IT?

"It is very important how the public rate a currency. Public perception about the currency is what monetarists miss."- Alasdair Macleod

# WHAT DOES MACLEOD MEAN?

Even though many people think that the FED and ECB raising interest rates will shut down inflation over time, this is not entirely the case. One of the most important factors for currency stability is trust. Essentially, the only value of a fiat currency as we have it at the moment is the trust of the people. If this fades and people do not trust in the value of their money anymore it's worthless. Therefore, inflation tends to rise over time, since it causes people to lose their trust in their local currencies, raising the question if the market currently underestimates how hawkish the FED really has to be. If this is the case, we will probably see more falling stock market prices, which is why we have built a portfolio to protect us from those losses.

Trade safely