Post #1550 by UpNorthJoe on the Macroeconomic Trends and Risks board

Personal Finance Topics / Macroeconomic Trends and Risks

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thanks for the graphs !

So, no place to hide from stagflation. But TIPS are a better bet than stocks, if
we can trust that TPTB will not gerry-rig the inflation numbers. All assuming that a new
bout of stagflation plays out like the 1970s version.

Your 1st graph shows that in nominal terms, from 1-1-70 to 1-1-80, stocks had a "return" of
2.07% per year. Using the #'s from the graph, $90.30 invested on 1-1-70 was worth $110.90
on 1-1-80. Not good, even ignoring inflation.

Your 2nd graph shows that adjusted for inflation, the market lost 36% of it's value during
the same timeframe. Really not good. That $110.90 bought only $70.98 in 1970 currency.
Ouch.

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