3 ms·

If I had $1000 in cash, and inflation hits 10%, the purchasing power is equivalent to (1000 / 1.1 = ~$909) in 2026. If I had the same $1000 in stock, and it lo

If I had $1000 in cash, and inflation hits 10%, the purchasing power is equivalent to (1000 / 1.1 = ~$909) in 2026. If I had the same $1000 in stock, and it lost 11% of its value in 2 days, I might worry about it being worth close to $0 by the end of the month.

bawolff 2y ago
If stocks hit $0, you probably have more immediate concerns - like where you are going to get your next meal and if someone is going to shoot you for the contents of your fridge. Stocks could still continue to fall, but they aren't going to slide to zero.
- some_furry 2y ago
  Stocks overall? No. The few stocks I might have specifically invested in? Possible.
  - mathfailure 2y ago
    Then it'll be a good lesson for you to diversify investments.
    - some_furry 2y ago
      You're totally missing the point, but ok.
      - mathfailure 2y ago
        What was the point?
        some_furry 2y ago
        When faced with "cash in hand that might lose value through inflation" versus "the stocks you currently own at risk of being worthless", the decision to sell is straightforward even in the absense of a next step.
        bawolff 2y ago
        There is always a risk that a specific stock will go to 0. It happens even in good ecconomic times. The decision to sell is not straightforward, even given the current situation. It would probably be the wrong decision for the average person unless you really know what you are doing.
        some_furry 2y ago
        Under ordinary circumstances, sure. But right now, sell sell sell is a forgiveable reaction.
- whatever1 2y ago
  They can fall 90% slowly. Look at south Europe after 2018
  - tasuki 2y ago
    I did, and did not see a 90% fall.
    - whatever1 2y ago
      The Greek stock exchange went gradually from ~5,500 in 2007 to ~ 500 in 2011. The recovery started only after 2020 ish. Today it is around ~1,500. Edit: Oh now I see. I had a typo. I meant to say the crash happened after 2008 not 2018.
- deleted 2y ago
  [deleted]
kragen 2y ago
> Brazilian hyperinflation lasted from 1985 (the year when the military dictatorship ended) to 1994, with prices rising by 184,901,570,954.39% (or 1.849×1011 percent; equivalent to a tenfold increase on average a year) https://en.wikipedia.org/wiki/Hyperinflation#Notable_hyperinflationary_periods https://en.wikipedia.org/wiki/Hyperinflation#Notable_hyperin...
- kragen 2y ago
  This should read "1.849×10¹¹ percent".

bawolff 2y ago

If stocks hit $0, you probably have more immediate concerns - like where you are going to get your next meal and if someone is going to shoot you for the contents of your fridge. Stocks could still continue to fall, but they aren't going to slide to zero.

some_furry 2y ago
Stocks overall? No. The few stocks I might have specifically invested in? Possible.
- mathfailure 2y ago
  Then it'll be a good lesson for you to diversify investments.
  - some_furry 2y ago
    You're totally missing the point, but ok.
    - mathfailure 2y ago
      What was the point?
      - some_furry 2y ago
        When faced with "cash in hand that might lose value through inflation" versus "the stocks you currently own at risk of being worthless", the decision to sell is straightforward even in the absense of a next step.
        bawolff 2y ago
        There is always a risk that a specific stock will go to 0. It happens even in good ecconomic times. The decision to sell is not straightforward, even given the current situation. It would probably be the wrong decision for the average person unless you really know what you are doing.
        some_furry 2y ago
        Under ordinary circumstances, sure. But right now, sell sell sell is a forgiveable reaction.
whatever1 2y ago
They can fall 90% slowly. Look at south Europe after 2018
- tasuki 2y ago
  I did, and did not see a 90% fall.
  - whatever1 2y ago
    The Greek stock exchange went gradually from ~5,500 in 2007 to ~ 500 in 2011. The recovery started only after 2020 ish. Today it is around ~1,500. Edit: Oh now I see. I had a typo. I meant to say the crash happened after 2008 not 2018.
deleted 2y ago
[deleted]

kragen 2y ago

> Brazilian hyperinflation lasted from 1985 (the year when the military dictatorship ended) to 1994, with prices rising by 184,901,570,954.39% (or 1.849×1011 percent; equivalent to a tenfold increase on average a year) https://en.wikipedia.org/wiki/Hyperinflation#Notable_hyperinflationary_periods https://en.wikipedia.org/wiki/Hyperinflation#Notable_hyperin...

kragen 2y ago
This should read "1.849×10¹¹ percent".