Inflation’s impact

Inflation impacts the whole economy. So the effect on your bottom line should be all important to you.

• Inflation, the sustained and broad rise in the prices of goods and services over time, erodes purchasing power.
• A low but positive inflation rate is economically advantageous, while high inflation tends to feed on itself and impair the economy’s long-term performance.
• Real estate, energy commodities, and value stocks have historically outperformed during periods of high or rising inflation.
• Conversely, bonds and expensive growth stocks tend to lag as inflation lowers the present value of their future cash flows to investors. 

I will write a longer blog on the subject later this quarter