Inflation: Too Hot, Too Cold, or Just Right?
Thursday, 04 March 2021
Inflation means a general increase in prices and a fall in the purchasing power of money. We have not truly experienced high inflation in the U.S. since the 1970s when an oil embargo by OPEC caused prices at the pump that some families couldn’t afford. However, three current factors are leading many to wonder whether the U.S. economy is about to overheat with high inflation, as well as causing concerns about what this would mean for investors. It’s an important question because there are many misconceptions about how inflation impacts investments. A lot of people believe inflation is bad for the stock market, but the data shows differently. Jay Pluimer provides your five-minute primer on inflation in this episode and explains why he believes it is not too hot, not too cold, but just right to support a broad recovery from the pandemic.
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