Damn near every economist and analyst seem oblivious to the point being made in this article. The Fed should be ecstatic so many people are willing to invest in intangible assets. By not buying tangible and real items they help to minimize inflation. In our bullshit world where media outlets like Bloomberg tout the message if you are not in this rising market, you are missing out, it is understandable that people want in. With this in mind, it is no wonder the investment world has become a minefield that is often compared to a casino.An intangible asset is a useful resource that lacks physical substance. Examples are patents, copyrights, trademarks, and goodwill. Such assets produce economic benefits but you can’t touch them and their value can be very difficult to determine. These intangible assets are often in sharp contrast to physical assets like machinery, vehicles, and buildings.
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| This Does Not Tell The Whole Story |
The term tangible assets, in this case, could be used to describe shorter-term assets, such as inventory since these items are intended for sale or conversion to cash. Most tangible assets can be easily converted to cash, this is why most people include as “tangible” the amount of money in a bank account. Even though money held by a bank is a paper promise, it falls into a “grey area” in that it holds the characteristic of being rapidly converted to something real like property such as cars, houses, or boats. Some of these accounts can also be used as collateral in case you want a loan.
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