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Q: How does inflation affect stocks and bonds?
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Related questions

Difference between stocks and bonds?

stocks are stocks and bonds are bonds . flatout -ashes


Do corporations issue stocks and bonds?

They do in fact issue stocks and bonds.


What has the author Roger G Ibbotson written?

Roger G. Ibbotson has written: 'Initial public offerings' 'Stocks, bonds, bills, and inflation' -- subject(s): Prices, Securities, Stock price forecasting, Stocks


Can a 401K plan keep up with the rising cost of inflation?

It depends on what you invest in in your 401(k). If you invest in stocks, their return typically outpaces inflation. Bonds return less, and so it's harder to outpace inflation. If you invest in cash, such as in a money market fund, then you won't outpace inflation.


What is more risky stocks or bonds?

Stocks.


Which earns interest stocks or bonds?

bonds


What is stock exchange and what is stocks and bonds?

A stock exchange is a place where stocks are traded. Stocks are shares of a company. Bonds are like a loan to a company.


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.


Will long term debt increase when you issue stocks and bonds?

When a company issues bonds, yes. Stocks, no.


What was the long term goal for the federal securities act?

To regulate stocks and bonds.


What happens to stocks and bonds after the stockholder dies?

They become part of the deceased persons estate If the decedent had a will, the stocks and bonds pass on to the wills beneficiaries If there was no will, the state intestacy laws determine who gets the stocks and bonds


Where can a person go to get tips on stocks and bonds?

Many websites that deal with investments of stocks and bonds will provide tips on them. Websites such as Daily Finance, Stock Twits, and Learn Bonds will give many useful tips for picking the right stocks and bonds.