Daily Inflation is focused on covering the latest news and thinking on inflation.
Although in the short term there is much debate about whether the US and the world economies face deflation or inflation, there is little argument that there is inflation waiting for us all at some point down the road.
This blog came out of my own research on how to best position myself for this coming inflation and hopefully will serve as a resource for others in this regard.
If you aren’t taking into account inflation/deflation into your investing strategy in the longer term you are likely to get burned. If the US faces a lost decade or two like Japan has experienced, having your money invested in the stock market will be a big mistake. This is what the last 20 years up until 2014 looked like in Japan for “buy and hold” investors.
On December 29 1989 the benchmark Nikkei 225 Average reached a peak of 38,915.87.
On December 30 2009 it closed at 10,638 …almost three-quarters below that all-time high. Not even the gloomiest pessimist could have imagined that and that performance easily makes it the worst performing developed market over the intervening period.