The Dollar Is Changing Hands at the Slowest Pace Ever

(Bloomberg) --

The velocity of money is an attempt to estimate the average number of times a dollar changes hands. It crashed to record lows during the pandemic as the savings rate surged. But it had been trending downward for more than two decades prior to that.

Adrian Helfert, a fund manager at Westwood Holdings, joins the latest “What Goes Up” podcast to discuss what it means for markets. He also talks about how he and investors are positioned for the upcoming election and other hot financial topics. Highlights of the conversation are below: 

“Certainly we can have all of the monetary creation in the world and liquidity that it's created. But unless that money changes hands, it's going to be very hard for us to see inflation, it's going to be hard to see bond yields rise.”

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