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Yes, because in the long run the equity will increase in value by the amount the currency has been debased holding all other things constant. Put another way,
by nknealk 6y ago
Yes, because in the long run the equity will increase in value by the amount the currency has been debased holding all other things constant.
Put another way, if a currency is debased by 20%, businesses will raise prices or reduce costs to maintain the same margins over the long run.
- AnimalMuppet 6y agoBut if the equity increases in value by the amount the currency has been debased, are you ahead? To me it looks like you're just even. Worse, you're behind if you have to pay taxes on the gains.
- ryandrake 6y agoIf the alternative is “not investing” and your currency gets inflated, then you’re ending up behind. I’d rather break even than be behind.
- DataWorker 6y agoTina. Real estate, bonds, cash. Buying companies while state run capitalism in the east cold wars against American mega corporations like apple, with a neoliberal pro-trade administration, it should be easy to see why equities are a popular choice.