Silicon Valley.
Speaking from a mining industry perspective, best time to invest might be after about 3-5 years of price deflation. If you invest in capital when prices rise sharply then you can lose a lot of money; as mining companies generally seem to do discover when there is a bull market :/. I've seen mining companies do a pretty good job of bankrupting themselves by not investing when prices have been dropping for a while then over-'investing' when the price rises.
So, in the real economy, sane people would invest when prices drop. On a sane timeframe. None of this millisecond knee jerk day trading business.
Basically, the argument is that investment depends on anticipated change over some time horizon. If someone has a long time horizon, best time to set up is in a deflationary period. It isn't a general rule but you'd certainly see some canny people getting their hands dirty if they anticipated a shortage of some good or service.
I was reflecting on the increasing gap recently between price and quality. If inflation were the cause of increased prices the expectation is that quality would stay the same. Quality is going down however.
Where is that difference going then? Shareholder pockets.
What is the value of hoarding all that cash? If the Fed didn't print more there would not be enough currency liquidity in the market.
This is what we see today. Deflation is staved off only through QE. It should be through incentives to spend, but there are too many incentives to hoard.
It’s easy to sell 10 dollar bills for 8 dollars a piece. In what world is that considered growth?