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.

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13 views

Why does more money in the economy = inflation? [migrated]

Suppose there is a 4-people country: there is Jill, Sam, Bob and Kate, and each of them has $25. The money supply of this country is $100, and the value of all the goods produced is too $100 (the only ...
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1answer
171 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 ...
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1answer
75 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 ...
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0answers
45 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 ...
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1answer
156 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 ...
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3answers
124 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 ...
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2answers
231 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 ...
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3answers
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 ...
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1answer
25 views

Term Life Insurance premium vs Interest/Inflation rate

I am thinking of buying a term insurance plan for myself in India and am 28 years old. My premium per year to be paid for a period of 10 years and coverage till 99 years works out to be 111,213 INR. ...
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1answer
25 views

Are the EPS values on the Growth, Profitability and Financial Rations on MartketWatch Adjusted for Inflation

Take this page: http://financials.morningstar.com/ratios/r.html?t=GM&region=usa&culture=en-US Here we see a table showing financials for GM. For the row called "Earnings Per Share USD" are ...
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1answer
96 views

Sell or keep property just purchased

I bought a house with 2 units in Switzerland recently for $750k mainly for rental income and long term security. The house returns $29,000/annum brutto rental and after deducting interest, ...
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1answer
168 views

Shall we expect high inflation when government provides financial aid during covid-19?

I am not clear about the source of money when UK and US announced the COVID-19 financial help. For example, in the UK an employee may be eligible for 80% of the wage, capped at £2500, given their job ...
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2answers
63 views

Calculate hypothetical stock value in n years at todays' dollars? [closed]

I'm new to investing. If I buy hypothetical stock that meets this criterion: 100 shares at $100 per share Shares increase in value by 10% per year Inflation is 2% per year In today's dollars, what ...
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3answers
2k views

How much weaker would the US dollar be if each citizen receives a $1000 bonus from the government? [closed]

Currently there are talks of issuing a $1000 payout to all American citizens earning less than $130,000. Presuming the final number of recepients is 200 million people, this is equivalent to injecting ...
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2answers
80 views

Hedging currency in anticipation of relocating

I live in the US, so I use USD for daily activity, but I plan to move to the EU in <5 years and live there long term. My portfolio is currently denominated in 80% USD and 20% other, but I don't ...
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2answers
217 views

S&P 500 only returns 1.26% (after UK inflation)… am I wrong?

I invest in the S&P 500 from the UK. I am trying to calculate what my investment pot will be in 25 years, adjusting for inflation. Unfortunately, my calculations point me towards an abysmal ...
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1answer
3k views

How much do I need to invest monthly to accumulate a given amount?

I have a target amount T USD (in today's value, before inflation) that I would like to accumulate over N years. Every month I invest X USD with an expected return of Y%. Expected inflation is Z% per ...
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3answers
266 views

Estimating nest egg and inflation

First a couple paragraphs for me to lay out my understanding and then my actual question. It is often reported that one can estimate how much they need for retirement by taking their current expenses ...
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2answers
279 views

Why is there more attention on the S&P 500 than on the S&P 500, inflation adjusted, with dividends?

Dividends, like increased stock price, are just another equivalent way for shareholders to gain value (with some tax differences). Many investors reinvest the dividends and so never "see" them. Of ...
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2answers
211 views

If I'm 25 and work 10 years to cover the 40 credits required to qualify for Social Security, will my payments be indexed to inflation when I retire?

If I'm 25 and work for the next 10 years to cover the 40 credits required to qualify for Social Security, will my payments be indexed to inflation when I retire?
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3answers
345 views

Is gold inflation-proof or not?

I feel a bit confused. I read something on this site about gold being inflation-proof. Other people stated that it is untrue. I feel confused why. You can print money, but you can not print gold, ...
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5answers
874 views

What should one do to not lose the value of his money over time

I live in Europe with my parents. I work and I have around 18k € (US$ 20k) in my bank account. I know that money loses its value over time and I wonder what I can do with that money and my income ...
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2answers
111 views

How exactly does redenomination work?

basically I was having a history lesson in school and we were learning about inflation and how countries employed redenomination to save their suffering economies. I don't really understand how simply ...
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1answer
82 views

How to calculate inter-annual variation of inflation for a 3 month period

I have the monthly indexes taken from the National Institute of Statistics of my country (below), then I can calculate its inter-annual variation easily: ((index month year - index same month year - ...
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2answers
157 views

Good ways to keep up with inflation with a business account?

My spouse and I recently purchased a rental property. We have about $40,000(US) that a recently deceased relative left us and we have decided to use it for our rental business to handle special ...
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1answer
52 views

Is there a website that gathers all the economic indicators for all countries? [closed]

Right now, in order to get a sense of how the economy is doing, I'm simply reading news articles. I was wondering if there exists a website that gathers all that data in a very summarized fashion, to ...
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3answers
279 views

Why does bond price go up with interest rate decrease?

I understand that a decrease in prevailing market interest rate causes a downward pressure on the bond yield and, equivalently, an upward pressure on the bond price. But what if a decrease in interest ...
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2answers
81 views

Prolonged low base rate and personal savings

The Fed recently has prolonged its low base rate and is even considering lowering it further. I am an EU resident, and our base rate is even lower - it has been 0% for several months and it seems that ...
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1answer
146 views

Term deposits in Sri Lanka have a high interest rate - what's the catch?

This website here shows a comprehensive comparison of term deposit rates in Sri Lanka. Currently you can get a 12 month term deposit at a rate of 10.75% with an AA+ rated bank. Compare this to ...
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0answers
90 views

How can a person prepare for a redenomination?

Redenomination is being discussed in South Korea. While some officials announced that they are considering this as a long-term assignment or not even considering, the gold price is already fluctuating....
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1answer
625 views

Could the UK be subject to hyperinflation following a No Deal Brexit? [closed]

As I understand it, a No Deal Brexit will see the UK's current trade deals with the EU cut off immediately without a grace period to renegotiate. It's generally accepted that this will cause the value ...
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2answers
199 views

How inflation affects returns and dividends

How inflation is linked to returns AND dividends? We know that adj returns are (1+return)/(1+inflation) -1 But how do we account for dividends? Suppose: 10% annual return 3% inflation 4% dividend ...
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1answer
125 views

How to adjust for long term inflation in an investment plan

So I have my investment Plan set in March 2019, with initial portfolio value of 250.000€, annual return 11% and long-term inflation rate at 1.5%. As you can see in column A, I have Capital BoP, ...
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2answers
342 views

Why are stocks good hedges against inflation?

So i was doing some research on inflation and i came across this sentence, "The impact of inflation on your portfolio depends on the type of securities you hold. If you invest only in stocks, worrying ...
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2answers
68 views

Inflation calculation

Am I correct in saying that £100 in the year 2000 was worth roughly £60 in 2018 (or had the same buying power to put it another way)? I've used the calculator here, but they way they put it is ...
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2answers
323 views

Understanding annuities with respect to Term Life insurance

I am financially well to do. I have Term Life insurance (along with high 6 digits in savings) that will protect my kids. I am considering protecting myself and guarding against outliving my assets ...
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2answers
210 views

Bonds, interest rates and inflation

I was reading Learn to Earn by Peter Lynch and I came across a paragraph that has confused me to say the least. It is regarding bonds - If you buy a $10,000 ten-year bond and hold it for ten years,...
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3answers
228 views

Does it make sense to save money in times of high inflation?

This is a chart with the inflation rate in my country over the years: It was the highest in 1993, at 256.1%. I was wondering if it would have made sense to save money in the years of high inflation ...
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2answers
477 views

Is storing money in a bank the best way to utilise your savings?

Over the past few years, the rate of inflation in my country has outpaced the interest on my savings account, meaning that I have been losing money as its value has dropped faster than its quantity ...
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1answer
41 views

How do I find the lost opportunity of not investing an amount considering a certain inflation percent

I am doing a course on Personal Finance & Investment. In the chapter of about impact of not investing, one of the questions in a quiz is to calculate the effect of inflation on a sum of money not ...
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2answers
93 views

What is the most accurate way to calculate the difference in value of one dollar between two target years?

This question concerns only USD, and doesn't need to be more granular than a year-level. I am trying to create a model that takes various features into account in explaining why a particular service ...
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1answer
63 views

Example TIPS and how inflation rate affects its principal

Taken from here. Say the Treasury issues an inflation-protected security with a $1,000 face value and a 3 percent coupon. In the first year, the investor receives $30 in two semiannual payments. That ...
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4answers
178 views

Easy way to measure how inflation affects me

Is there a simple way to measure how inflation actually affects me? No complicated formulas, or building a basket of goods, give each product a weight in the basket, or spending large amounts of ...
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2answers
309 views

How can I calculate the present value of money from the past

I have to calculate a total sum of money which is composed of different values that have to be normalized to the present value of money: I have an array of values each value consisting on the amount ...
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0answers
87 views

ADR value with US dollar inflation / recession

If one were to hold an ADR (American depositary receipt), and the currency of country of the underlying foreign security increases in value compared to the US dollar, or the US dollar drops in value (...
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1answer
769 views

Minimum Required Nest Egg Formula?

As a follow-up to this question, what is the minimum size of a nest egg to support 30 years of $5,583.33 monthly distributions? I want the $5,583.33 to increase with inflation each month. The ...
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1answer
138 views

Is The Federal Reserve's Balance Sheet Captured in any of the Money Supply Figures? [closed]

Is the $4T balance sheet captured in any of the money supply estimates or is it separate? Thank you in advance for your consideration and response.
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4answers
359 views

Can a rent increase with RPI value be enforced retroactively?

In October 2016 we have rented a lovely house through an agency and , while negotiating , the landlord proposed that after one year the rent should increase with the RPI value. We accepted but with a ...
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2answers
648 views

What causes S&P 500 to grow faster than inflation? [closed]

Facts Average annual rate of USA's inflation is ~2% for the past couple of years Average annual return of S&P 500 is 10% Why? Many people suggest to move your money of your bank, which is maybe ...
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4answers
837 views

Is it wise to buy a car in a high inflation rate?

A couple of my friends are planning on buying a car, and asked me to take part, so every one will own 1/3 of it. Here are some facts about me: The inflation rate in my country (Iran) is high. It's ...