cashflo2u2
Recycles dryer sheets
- Joined
- Oct 31, 2007
- Messages
- 332
Will they make up their goldarn #*@^&$# minds! Is inflation good or bad for equities?
Could somebody help me on this? All the financial planners I have dealt with and most websites I have read say you must have a big dose of stocks to offset the effects of inflation. However, certain others say that inflation destroys value and eats away at real investment returns. I also personally note that a whiff of inflation and the stock market goes down and expectations of inflation makes interest rates rise, which is bad for stocks. Which is it for heavens sake? Or are we talking about very long term effects vs. short term reactions?
Could somebody help me on this? All the financial planners I have dealt with and most websites I have read say you must have a big dose of stocks to offset the effects of inflation. However, certain others say that inflation destroys value and eats away at real investment returns. I also personally note that a whiff of inflation and the stock market goes down and expectations of inflation makes interest rates rise, which is bad for stocks. Which is it for heavens sake? Or are we talking about very long term effects vs. short term reactions?