Is Higher Inflation Bad News For Stocks?

Is Higher Inflation Bad News For Stocks?

“I remember the $0.05 hamburger and the $0.40 per-hour-minimum wage, so I’ve seen a tremendous amount of inflation in my lifetime. Did it ruin the investment climate? I think not.” –Charlie Munger


You’ve got to love this quote by Munger to put in all in perspective. Charlie certainly has seen a lot in his days as Warren Buffet’s closest partner and right-hand man. He’s also accumulated billions of dollars in personal net worth.

Inflation has come down a bit over last several months but it’s still a lot higher than what we’ve grown accustomed to over the last several years. Stocks over the long run have proven one of the best ways to combat the devastating effects inflation can have on your purchasing power.

Check out this 1 minute video by DFA that asks the question… Does Inflation Hurt Stock Market Performance?