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If you think of stocks as a form of currency, given that the dollar and euro are being so heavily inflated, perhaps it makes sense to stay in the markets than c
by dr_dshiv 7y ago
If you think of stocks as a form of currency, given that the dollar and euro are being so heavily inflated, perhaps it makes sense to stay in the markets than convert to cash at a definite loss?
- JumpCrisscross 7y ago> perhaps it makes sense to stay in the markets than convert to cash at a definite loss? Equities are less exposed to low to moderate inflation than assets with fixed pay-outs. No need to model stocks as currency.
- dr_dshiv 7y agoWhy? Or source?
- JumpCrisscross 7y ago> Why? Long story short, corporate earnings can absorb small and moderate inflation shocks. That lets dividends, and enterprise exit values, respond to low inflation.