Does Gold Do Well in Stagflation?
Well, Stagflation Should Be Negative for Almost All Assets. .. . in Such an Environment Gold Shines, as It Is a Safe Haven Uncorrelated with Other Assets...
Well, stagflation should be negative for almost all assets. ... In such an environment gold shines, as it is a safe haven uncorrelated with other assets. Stagflation is so terrifying because the Fed won't be able to rescue Wall Street simply by cutting interest rates, as it could only add fuel to the inflation fire.
What assets do well in stagflation?
Commodities like precious metals, industrial metals, and other industrial and agricultural goods can help you weather a stagflation period. Exposures to commodities are much easier to access in modern times than they were in the 1970s, and the crypto industry has currencies, securities, and commodities too.
How do you beat stagflation?
The only real way to beat stagflation is to invest, taking risk with your money in the hope of beating inflation – and with the economy suffering, that will be a tough challenge. Patrick Connolly, certified financial planner with AWD Chase de Vere, believes shares that pay good dividends will be the key to success.
James Sterling reports on renewable energy developments, climate policy, ecological conservation, and green tech innovations around the globe.
