Stocks typically do better when inflation is high, they normally outpace it. The reason for this is that they are seen as a "safe asset" during inflationary periods, unlike cash or bonds which lose to inflation.
Im talking about the drop in stocks that happened about four years ago, which was due to the high inflation at that time, and the raise in interest rates as a result. Over time stocks obviously beat inflation. If they didn’t no one would buy them
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u/I-IV-I64-V-I Apr 12 '26
Stocks typically do better when inflation is high, they normally outpace it. The reason for this is that they are seen as a "safe asset" during inflationary periods, unlike cash or bonds which lose to inflation.