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We are heading into a period of high inflation due to the impact of oil costs. What are stocks that will survive this - other than the obvoius - Oil stocks!
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∙ 12y ago
Wiki User
∙ 11y agoGold silver
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What is better for the economy low inflation or high inflation?
Generally, low inflation is better for society because inflation has costs associated with the reallocation of assets and their value (that is, it costs money for people to change their decisions when inflation changes the value of their goods/services).
How does inflation affect saving and investing?
During periods of high inflation, investors generally try to preserve purchasing power by seeking returns that keep up with inflation. Equity (stock) markets generally perform poorly in periods of high inflation with the exception of stocks of companies that benefit from inflation (like commodity companies). The Dow Jones Industrials average was basically flat in the 1970's when inflation was high. Yields on fixed income securities (govt bonds and corporate bonds) usually rise with the corresponding increase in inflation since fixed income investors need a premium over the rate of inflation for a 'real' rate of return. For example, a bond investor that requires a 5% return in a 3% inflation environment will require 7% in a 5% inflation environment. The Investopedia link below has a basic article on this topic.
Which was the decade of high inflation and high unemployment?
Which was the decade of high inflation and high unemployment
What is the relationship between CPI and inflation?
CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
Is inflation caused by high inflation?
no ,but it is caused by econemy
What would people do in periods of high inflation?
550% loser
What is better for the economy low inflation or high inflation?
Generally, low inflation is better for society because inflation has costs associated with the reallocation of assets and their value (that is, it costs money for people to change their decisions when inflation changes the value of their goods/services).
How does inflation affect saving and investing?
During periods of high inflation, investors generally try to preserve purchasing power by seeking returns that keep up with inflation. Equity (stock) markets generally perform poorly in periods of high inflation with the exception of stocks of companies that benefit from inflation (like commodity companies). The Dow Jones Industrials average was basically flat in the 1970's when inflation was high. Yields on fixed income securities (govt bonds and corporate bonds) usually rise with the corresponding increase in inflation since fixed income investors need a premium over the rate of inflation for a 'real' rate of return. For example, a bond investor that requires a 5% return in a 3% inflation environment will require 7% in a 5% inflation environment. The Investopedia link below has a basic article on this topic.
Which was the decade of high inflation and high unemployment?
Which was the decade of high inflation and high unemployment
What is the relationship between CPI and inflation?
CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
Is inflation caused by high inflation?
no ,but it is caused by econemy
How Inflation Can Destroy Shareholder Value?
Periods of High Inflation usually bring higher interest rates, and pressure to raise wages, and varying distortions to product input prices. They also make it more difficult to price one's own products. Companies that have trouble managing interest rates or those that hold high levels of output inventory would have difficulties in a higher inflation environment. Those that manage these aspects well should not have those issues. RichmondRob
Reasonable monetary policy during a period of high inflation?
During times of high inflation, it is best to regulate the price increase of the retailers. Policies should include price regulation, and consumer control.
Would the classical model of the price level be relevant if there is a great deal of unemployment in the economy and no history of inflation?
No - The classical model is only realistic during periods of high inflation, because the stickiness of nominal wages and prices rise. This results in the Aggregate Supply Curve shifting left to it's next long-run equilibrium level much more quickly than during periods of low inflation.
What does the Phillip's Curve illustrate?
A graph that shows that there is a relation between unemployment and inflation: One can either have a high inflation and low unemployment or low inflation with high unemployment.
How does Krugman feel about inflation?
Paul Krugman, a columnist with The New York Times, has published an article that promotes the view that inflation should be allowed to occur. High inflation, he states, promotes spending over saving, and reduces the real value of any debts.
To help stop high inflation Germany?
Germany implemented policies to help stop high inflation.
