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To: blam
"Typically stocks keep up at about 85% of inflation so you're not going to lose too much by owning the market vis-a-vis inflation..."

So if inflation is running at 15% per annum, your cash value is depreciating at 14% per year (assuming you are earning 1%) which is absolutely devastating. With stocks, you are keeping up at 85% of inflation which is a lot better than cash.

But it takes a lot of courage to stay the course on equities with their ultra-high prices and valuations right now. If there's a big market correction (which many are predicting) it could take a long time to make that up in a high inflation environment.

4 posted on 06/15/2021 4:33:34 PM PDT by ProtectOurFreedom ("Pour les vaincre il faut de l'audace, encore de l'audace, toujours de l'audace")
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To: ProtectOurFreedom

Want to become rich, and believe inflation is coming?

You can still buy inflation insurance hedges for a fraction of a penny on the dollar.


5 posted on 06/15/2021 4:41:27 PM PDT by Renfrew
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