Bloomberg/Merryn Somerset Webb/3-6-2023
Cartoon courtesy of MichaelPRamirez.com
“The truth is, says the latest Credit Suisse Global Investment Returns (a must-read for City people), is that once inflation reaches 8%, and is front and center in the minds of all price-setters and wage negotiators, it takes multiple years to revert to target. Thinking anything else is ‘overly optimistic.’ So, with inflation near or above 8% in a large number of developed countries, what is an investor to do?”
USAGOLD note: Somerset Web finds that stocks are a good hedge when inflation is low (4% or lower), but a bad hedge when it is high.
