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by misja111
1553 days ago
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Stocks as a general protection against high inflation is an extremely bad advice, unless you specifically pick those stocks that will go up together with inflation.
But most stocks will do exactly the opposite! The reason is that stock prices are inversely correlated with market interest rates. And when inflation goes up, central banks will increase interest rates to suppress inflation. This is happening at this moment already. There are very few stocks that will keep up with high inflation. These are for companies whose valuation is mostly based on the properties they posess, such as e.g. real estate. |
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