Questions tagged [inflation]

For questions that relate to inflation, which is the general increase in the prices of goods and services over a period of time.

Filter by
Sorted by
Tagged with
0 votes
1 answer
236 views

Is my plan viable for dealing with inflation?

Question about inflation and my idea about how to handle it. Electrical Engineer here,so please bear with me if I use non economics terminology. So as we see the prices are going up for everything. I ...
user avatar
0 votes
1 answer
49 views

Market risk for TIPs vs. I Bonds

Treasury Direct has a good comparison between TIPs and I Bonds: https://www.treasurydirect.gov/indiv/products/prod_tipsvsibonds.htm However, I want to make sure I understand when you can lose ...
user avatar
1 vote
1 answer
93 views

Are inflation protected bond funds a hedge against rate hikes?

Generally speaking, I'm a buy and hold index fund investor, with a long-term time horizon (20+ years). I currently keep ~12% of my account in intermediate-term bond funds. I don't usually make big ...
user avatar
  • 141
0 votes
1 answer
150 views

Can a non-Turk borrow Turkish lira?

Turkey is currently on the cusp of a hyperinflation apparently triggered by its president's policy of maintaining nominal interest rates far below inflation. Thus Turkish banks are currently giving ...
user avatar
1 vote
1 answer
85 views

Inflation vs Mortgage - Updated for Inflation

I don't see an exact match to this question although I previously asked when things were calmer. The press is quoting a real YoY inflation rate of 7%. Let's assume there is a mortgage at 4% and a ...
user avatar
  • 57
0 votes
0 answers
36 views

Are there any trading products which track inflation?

Are there any derivative trading products that track inflation very well? I was thinking for example that there would be something like consumer price index derivatives. Or maybe derivatives for some ...
user avatar
0 votes
1 answer
148 views

Does inflation erode stock earnings or are stocks a good inflation hedge? - Intelligent Investor Book Question

I've come across this in the beginning of the book "The Intelligent Investor", by Benjamin Graham: How well did Graham’s forecast pan out? At first blush, it seems, very well: From the ...
user avatar
5 votes
1 answer
307 views

How do you factor in inflation when calculating internal rate of return on an investment?

Say you invest $1000 into a venture on day 1. Then you invest another $1000 on day 365. Then, on day 730, its market value is worth $4000. If I were to put these numbers into an Excel spreadsheet like:...
user avatar
  • 223
3 votes
2 answers
260 views

Is there no tax free way to shelter your savings from depreciation due to inflation like converting to any other unaffected foreign currency?

As I understand it, currency appreciation is treated as taxable income. However, if the currency you've converted to or any other currency you convert to isn't really appreciating at all and instead ...
user avatar
13 votes
10 answers
6k views

If stocks are products, and inflation makes the price of products go up, then why don't stocks benefit from inflation?

Inflation makes my money worth less, but stocks aren't money: They're a product that's worth money. If inflation makes prices rise, then does it follow that inflation will also increase the value of ...
user avatar
  • 431
1 vote
1 answer
81 views

Inflation Protected Bonds, How to find an index of them?

I came across TIPS in Graham’s security analysis book. I attempted to find them on DEGIRO but and found indices of such: iShares $ TIPS UCITS ETF EUR Hedged (Acc) Q1: How do you decipher that? Q2. Is ...
user avatar
0 votes
1 answer
144 views

Is the Gold precious metal undervalued (towards the end of 2021)? [closed]

At the moment, money is being printed on a massive scale. The money is flowing into the stock markets and the younger generation is investing it in Crypto. Am I correct in assuming that Gold is ...
user avatar
  • 664
4 votes
2 answers
204 views

How do I use my spare money? (Brazil)

I am writing this question because I want to know what are the best options for using my spare money. Hence, let me first describe my situation: Who am I? I am a 24 years old no child single male. ...
user avatar
2 votes
2 answers
402 views

When the government starts to print money, buy a house to double or triple your money?

It seems it is so obvious, but is it true? When the government starts to do "quantitative easing" or print money, then the price of a house can go from $1.2 million to $1.5 million easily, ...
user avatar
4 votes
3 answers
463 views

How do you live or survive in an area with hyper-inflation?

I live in a place where the cost of products and services are rising rapidly and exponentially while people's earnings are almost the same with only minimal changes. For example, you need to work for ...
user avatar
2 votes
2 answers
127 views

Do stock price charts need to be adjusted for inflation? [duplicate]

If I am looking at a multi-year price chart of a stock, do I need to adjust the prices for inflation? In the presence of inflation, the recent prices are more comparable to the current price than the ...
user avatar
  • 14.7k
0 votes
3 answers
150 views

Mid risk inflation hedge for parents retirement with 10/15% of total?

My parents are very conservative and uneducated about money, and they’re keeping most of what will be their retirement (in 3/4 years) in CD. I convinced them this is detrimental due to inflation, but ...
user avatar
  • 195
-1 votes
3 answers
343 views

Why sell stocks when inflation is high?

It doesn’t make much sense to me why the stock market (sometimes, today isn’t really an example) does more poorly when inflation is high. If CPI was high, I would think you’d want your $$$ invested in ...
user avatar
0 votes
1 answer
97 views

What is the formula to use to calculate future value of certain money on a certain month from today?

I have an excel sheet like below - In one cell (B1), I would mention the principal value, PV (for which I want to know future value at different point of time). And inflation rate, r, in another cell ...
user avatar
  • 133
1 vote
3 answers
334 views

Who’s losing money when debt becomes easier to payoff thanks to inflation?

The Consumer Price Index in the US in May jumped up by 0.6%. Overall it’s possible that prices on goods (aka inflation) will increase by 10% in 2021. Now, assuming that salaries follow trend as well ...
user avatar
  • 5,310
1 vote
0 answers
63 views

When inflation occurs, why do bonds no longer get cheaper as they sell off? [closed]

I thought that inflation drove down bond prices in general, but I read in "The Invisible Hands" by Steven Drobny that it is only when inflation rises that government financing becomes a ...
user avatar
10 votes
5 answers
4k views

What’s the difference between inflation and inflation tax?

I get that people seem to be using the term inflation tax as a metaphor for understanding inflation, but it seems to be a bit more than that. We all know that inflation reduces the buying power of our ...
user avatar
0 votes
1 answer
105 views

What are the pros and cons of Inflation Protected funds vs Intermediate Government Securities funds?

For example: PRRIX - https://www.morningstar.com/funds/xnas/prrix/quote Inflation Protected SGVIX - https://www.morningstar.com/funds/xnas/sgvix/quote Intermediate Government
user avatar
1 vote
2 answers
146 views

0% rate of return + inflation differs from inflation alone

Given that Real Rate of Return = (1 + nominal rate) / (1 + inflation rate) -1 If my nominal rate equals the inflation rate I get 0, meaning that my money is worth the same no matter the inflation ...
user avatar
0 votes
1 answer
39 views

Calculating real rate after taxation - is there a better way?

First I need a sanity check for my calculations. Say I have this scenario: Nominal Rate (per year) [r] 13% Inflation Rate (per year) [i] 5% Initial investment [x] $ 100.00 Time (years) [t] 10 Tax ...
user avatar
-1 votes
4 answers
373 views

Hyperinflation effects on mortgages [closed]

Is it conceivable that some kind of monetary reform would be carried out in western countries (or Europe, or Switzerland if that matters), in which assets and debts (mortgages) would be converted ...
user avatar
  • 194
1 vote
1 answer
55 views

Why does the price of a TIPS bond not match the inflation adjusted principal near or at maturity?

As stated by the US Treasury: With a rise in the index, or inflation, the principal increases. With a fall in the index, or deflation, the principal decreases. I'm curious why a TIPS (912828QV5) ...
user avatar
0 votes
1 answer
52 views

What is the inflation rate based on the current CPI? [closed]

In April, the Consumer Price Index reached a record high of 4.2%. My questions are: Is this 4.2%, the inflation in the US now? Where can I find the inflation rate since 2005?
user avatar
0 votes
1 answer
240 views

If the loan interest is lower than inflation rate, does it mean it would be less expensive to take a loan and spend now, than save to buy later?

I am considering to buy an upright piano. For that, I have been planning the budget I would need and how much I would have to spend/save to be able to buy it . A few things to consider: The piano ...
user avatar
  • 225
0 votes
1 answer
168 views

Are there good ways to hedge against a combination of high inflation & rising rates?

I have saved some money that I would like to use in the next 1-3 years to start a company. In the meantime I would like to make sure that inflation does not eat up into my accumulated capital. I am ...
user avatar
2 votes
3 answers
183 views

How to distinguish between appreciation and inflation?

Is there a way to differentiate between the appreciation of an asset and the devaluation of the currency it is denominated in (inflation)? I know I could look at conventional inflation measures (like ...
user avatar
  • 2,768
1 vote
1 answer
69 views

What is Wholesale Price Index and why is it so important?

Why is wholesale price index so important for us? How does it impact and what role does supply chain have to do with it?
user avatar
0 votes
2 answers
59 views

How home prices behaves during and after great inflation 1970s in USA

Is there any chart/data or research on average home prices during 1970s in USA in big cities (NY, LA etc.). I'm particularly interested in average price per square meter between 1970 to 1985.
user avatar
0 votes
3 answers
375 views

How does hyperinflation impact home prices? [closed]

I found on investopedia how inflation will affect companies profits and standard of living: high inflation can also impact corporate profits [...] reducing the standard of living of individuals, ...
user avatar
0 votes
2 answers
108 views

Can I buy some US treasury bills or notes ETFs (3 month to 5 years) with very low risk from the EU?

Can I buy some US treasury bills or notes ETFs (3 month to 5 years) with very low risk from EU (want to buy it in EUR so I don't have to convert it - would this even be a problem?). Because EU bond ...
user avatar
0 votes
1 answer
71 views

What is the relation between inflation on a country and the exchange rate of its currency?

In the interval between 2010 and 2011, American inflation was 3.2% and Chinese inflation was 5.55%. During this year, the pair CNY/USD went from 6.2524 to 6.5758. If an investor would have invested 1,...
user avatar
  • 101
0 votes
1 answer
80 views

Is a bunch of debt now better than distributed debt in the future in terms of paying less in the long run?

This might be too theoretical but it popped into my head this concept for attending University/College. If you had the ability to choose one of the following which is best in terms of you paying ...
user avatar
-2 votes
3 answers
93 views

Which of Stocks, Bonds, Real Estate, Bitcoin, Gold, are not subject to devaluation of money?

Currency in circulation from year 2000 to 2020 appeared to have increased 3x. And a cappuccino in California went from $1.75 to $4.40, a beef noodle from $3.50 to $11, and a house from $600k to $1.5 ...
user avatar
  • 1,543
-1 votes
1 answer
89 views

Why are the SIPC and FDIC limits not increasing with inflation?

Social Security benefits increase with Inflation. So I am wondering what prevents law makers from making FDIC and SIPC limits increase with inflation as well?
user avatar
  • 588
3 votes
1 answer
966 views

If TIPS yields are negative, why do TIPS ETFs have a positive yield?

I've heard that TIPs currently have a negative yield. But the VTIP ETF from Vanguard has a positive yield of about 1.2% right now. Why is that?
user avatar
  • 133
0 votes
1 answer
498 views

How to protect your money from a hyperinflation? [duplicate]

Let’s say someone supposedly fears a hyperinflation and hence the devaluation of money (or historically speaking the implementation of a new currency, e.g. post-war Germany). This extreme inflation is ...
user avatar
  • 1
1 vote
1 answer
84 views

How to calculate monthly inflation from CPI

I have data that consists of dates and monthly CPI belong to that date. And I'm trying to find Inflation belongs to specific date, for instance inflation at 2015-02. I used this formula to calculate ...
user avatar
1 vote
1 answer
46 views

How do I factor currency devaluation when comparing the prices of houses in two countries?

I am thinking of buying property in Colombia and i'm trying to figure out if (or how bad) currency devaluation will affect it's value in the future. I have historical indices for the value of houses ...
user avatar
  • 13
0 votes
1 answer
258 views

How to save money while protecting it from inflation for a home?

Last time I heard from my friend that M1 money supply year increase in my country is about 35% and economy is frozen (I don't known is it true, but let assume that it is true in some country X). If I ...
user avatar
2 votes
1 answer
84 views

Earning from stock market and inflation calculation understanding

Please, help me with earning and inflation understanding. I have invested in SEB Strategy Defensive stock in beginning of year 2016. At this time unit price was 112. Now unit price is 115. I suppose I ...
user avatar
  • 121
2 votes
0 answers
78 views

How to account for time-value of money in a total cost of ownership calculation?

I am attempting to conduct a total cost of ownership (TCO) analysis for purchasing a vehicle, to compare the TCO between an electric vehicle and a conventional gasoline car. I would like this ...
user avatar
  • 2,768
0 votes
1 answer
163 views

Can the U.S print infinite money? [closed]

I know that a country can't simply print money to pay debt, since it would only lower the value of the money, i. e. cause inflation. But what about the U.S? Since their new printed money is very ...
user avatar
1 vote
3 answers
152 views

Does inflation directly increase stock prices?

Let's say there's a company in a normal, rational market with X outstanding shares valued at $100 per share in 2021. A year from then, there has been no news about the company, no changes in revenue ...
user avatar
  • 358
3 votes
2 answers
882 views

What is the safest asset to hold if you think a longterm depression is coming?

I'm obviously not a financial advisor, nor do I have a crystal ball. But the more I read/think about the global macro-level outlook the more I believe a long and deep correction is coming. Anyone with ...
user avatar
  • 138
5 votes
3 answers
2k views

Inflation and the current value of my dollar

I am trying to figure out the value of my $100 with a hypothetical 2% constant inflation rate after 30 years. Here is the scenario: suppose I have $100 laying under my bed and the hypothetical ...
user avatar

1
2 3 4 5