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What happens to people’s money during inflation when that money is tied up in stocks or mutual funds rather than in savings? Does the inflation affect the stock
by Rd6n6 5y ago
What happens to people’s money during inflation when that money is tied up in stocks or mutual funds rather than in savings? Does the inflation affect the stock prices, and partially protect you from the inflation?
- sn_master 5y agoDuring hyperinflation the entire economy tanks, and the stock market will reflect that, if not worse (companies going bankrupt and you losing everything). And, in those countries, investing in stocks is only for the upper class in general. It's nowhere as easy as in the US, and many of them don't even have a stock market or anything similar in the first place. Closest alternative is buying precious metals like gold, but then you run into the risk of fakes, theft and difficulty of transportation.
- fivea 5y ago> And, in those countries, investing in stocks is only for the upper class in general. I'm not sure that is true at all. I mean, nowadays it's as hard to buy a position in crypto as it is to buy stocks from the, say, US stock market.