Comments on: Using Stocks to Hedge Against Inflation http://moneyning.com/investing/using-stocks-to-hedge-against-inflation/ A personal finance blog where we share insights on carefully saving money, investing, frugal living, coupons, promo codes because the little things matter in achieving financial freedom! Thu, 29 Jul 2010 11:20:17 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Eric http://moneyning.com/investing/using-stocks-to-hedge-against-inflation/comment-page-1/#comment-28749 Eric Mon, 26 Jul 2010 22:56:12 +0000 http://moneyning.com/?p=2682#comment-28749 During the inflation of the 70's stocks did very poorly. High interest rates drove down the stock market as people went to other investments that gave them a high interest rate return. Also inflation eats away at corporate profits and its tough for a company to keep up. Also high interest rates, which accompany times of high inflation, makes the cost of borrowing for companies that much more. During the inflation of the 70′s stocks did very poorly. High interest rates drove down the stock market as people went to other investments that gave them a high interest rate return. Also inflation eats away at corporate profits and its tough for a company to keep up. Also high interest rates, which accompany times of high inflation, makes the cost of borrowing for companies that much more.

]]> By: ObliviousInvestor http://moneyning.com/investing/using-stocks-to-hedge-against-inflation/comment-page-1/#comment-15118 ObliviousInvestor Fri, 10 Apr 2009 11:34:35 +0000 http://moneyning.com/?p=2682#comment-15118 Hi El Cheapo. You're absolutely right. I'm a big fan of mutual funds as a method of achieving diversification. (In fact, I almost take it as a given. When I say "stocks" I generally mean "mutual funds consisting of stocks.") Hi El Cheapo.

You’re absolutely right. I’m a big fan of mutual funds as a method of achieving diversification. (In fact, I almost take it as a given. When I say “stocks” I generally mean “mutual funds consisting of stocks.”)

]]> By: El Cheapo http://moneyning.com/investing/using-stocks-to-hedge-against-inflation/comment-page-1/#comment-15110 El Cheapo Fri, 10 Apr 2009 02:20:00 +0000 http://moneyning.com/?p=2682#comment-15110 Very interesting advice. I might add that people should invest in mutual funds to let someone else diversify their portfolio for them. Otherwise, most people will constantly watch their stocks and potentially pull their money when the market goes down. Ultimately, stocks as a long-term investment are a good idea in my opinion (just make sure you never count on the money being there - I'm sure some people did 10 years ago and are regretting it). Very interesting advice. I might add that people should invest in mutual funds to let someone else diversify their portfolio for them. Otherwise, most people will constantly watch their stocks and potentially pull their money when the market goes down. Ultimately, stocks as a long-term investment are a good idea in my opinion (just make sure you never count on the money being there – I’m sure some people did 10 years ago and are regretting it).

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