Not exact matches
The evidence is clear that
value stocks perform better in
periods of high
inflation, and growth stocks perform better
during periods of low
inflation.
These investments are less likely to outpace
inflation and could even lose a significant amount
of their
value during high inflationary
periods.
During many shorter
periods when
inflation spiked, the
value of gold fell.
The evidence is clear that
value stocks perform better in
periods of high
inflation, and growth stocks perform better
during periods of low
inflation.
But if
inflation does unexpectedly soar
during the vulnerable
period, the real
value of that cash could diminish rapidly in just a few years.
In contrast to popular belief, equities underperform
during periods of rising
inflation as rising interest rates cause the net present
value of future cash flows to decrease (though equities do fair better than bonds).
And there are brief
periods during which there's the illusion
of good returns, but in the long run, the
value grows with
inflation and not much more.
Expressing rates
of return in real
values rather than nominal
values, particularly
during periods of high
inflation, offers a clearer picture
of an investment's
value.