How should individuals respond to this weird macroeconomic situation?
Do not buy bonds and be wary of bubbles (a lot of underutilized money sloshing around tends to lead to asset inflation).
My naive analysis is that demand for investment opportunities far outstrips supply, so we should be trying to find new ways to invest money.
I would probably say that the supply of investment funds far outstrips demand :-) but you would be concerned about "new ways to invest money" only if you had significant money to invest, which is not a common situation on LW.
Are there other simple investment strategies that individuals are in a better position to pursue than big investment firms?
Yes, there is class of investment strategies which go by the name of "liquidity constrained". If there is a small... market inefficiency out of which you can extract, say, $100,000/year but no more, none of the big investment firms would bother -- it's not worth their time. But for an individual it often is.
Yes, there is class of investment strategies which go by the name of "liquidity constrained". If there is a small... market inefficiency out of which you can extract, say, $100,000/year but no more, none of the big investment firms would bother -- it's not worth their time. But for an individual it often is.
Can you please say more about these and how to find them?
If it's worth saying, but not worth its own post (even in Discussion), then it goes here.
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