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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.
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How will inflation affect hospitality industry in Nigeria?
how does inflation affect hospitality in nigeria industry
How do interest rates and inflation affect real estate in south Africa?
explain how do intrest rates and inflation affect the real estate
What are the five major economic activities?
producing, exchanging, consuming, saving, investing
How did inflation affect the cost of goods on the colonies?
they were cheaper
How does investing in human capital affect GDP?
it increases it (gdp)
What is the difference between investing and saving?
Investing is when we expect the money to appreciate atleast to beat the inflation, and thus money grows. Saving is just to keep the money idle out of the expenditure.
What are the main goals of saving and investing?
For most people the main goals of saving and investing are to increase the amount of wealth a person has.
How can you double you money?
Smartly saving and investing it.
How will inflation affect hospitality industry in Nigeria?
how does inflation affect hospitality in nigeria industry
What is the differences between saving and investing?
http://financialwisdom.weebly.com/why-invest.html
Is saving and investing plan is part of a good financial plan?
yes
How does one receive the option of investing?
You can receive the option of investing by saving money and paying all your bills on time so you have leftover income to use for investing. You can learn more about investing online at the Investopedia website.
What will the federal government do in attempt to encourage saving and investing?
raise dividend rates
How do interest rates and inflation affect real estate in south Africa?
explain how do intrest rates and inflation affect the real estate
How would inflation affect any society?
Runaway inflation makes people want to spend their money now and buy durable goods like gold, houses and cars. Saving money is pointless. People with fixed incomes lose. People with money saved lose. Inflation robs people of their savings. People who owe money win.
What are the five major economic activities?
producing, exchanging, consuming, saving, investing
How will the weather affect the inflating of the balloons?
how will the weather affect the inflation of the ballooons
