Catching Up This series has been about finding the various investments whose returns have a positive correlation with inflation. We have found that most have a negative return during inflationary periods, but that there are certain things that have historically shown that they have returns that are positively correlated with inflation. Today, we are looking …
To Date In the first five parts of this series, we looked at the correlation between investment returns and inflation, determining which investments had positive correlation and which had negative correlation. Most were negative, some surprisingly so, but there were most definitely some with positive returns during times of inflation. Today, we are going to …
Where We Left Off If you have been following this series, you have seen a series of investment returns and their correlation with inflation, either positive or negative (most have been negative). In Part Four, I noted that we would next take a look at Consumer Staples companies’ returns since they are widely believed to …
Catching Up In the first three posts in this series we looked at the correlation between various stock market investments and inflation. Part One looked at Large Cap stocks and Small Cap stocks. Part Two looked at Value stocks and Growth stocks. Part Three looked at gold, oil, corn and soybeans. Long story short? The …
So Far In the first post in this series, we took a look at how Large Cap and Small Cap stocks (as represented by the S&P 500 Index and the S&P 600 Index) performed during inflationary periods. We observed that there is a definitive negative correlation between inflation and both Large and Small Cap stocks. …
I know this chart is difficult to read, but I am using one prepared by economist Peter Bookvar and he designed it for his purposes and not my blog. The chart shows the readings from the National Federation of Independent Businesses survey. Here is his explanation: Ahead of today’s payroll report we saw more signs …
Continued from Part One In Part One, we took a look at how stock market returns for Large Cap and Small Cap stocks are impacted by inflation. I showed linear regressions for the S&P 500 (Large Cap stock index) and the S&P 600 (Small Cap stock index) for various time frames, but we focused on …
In my last blog post, I provided some details on why prices are on the rise and inflation is becoming an issue. Since then, I’ve been doing some research on which investments perform positively and which perform negatively during inflation. Below will be a series of graphs I put together that compare the historic performance …
Signs Of Inflation It is earnings season which means I am reading a lot of company earnings reports. One thing that is very noticable is that companies are talking a lot about the increase in their cost of inputs. Stanley Black & Decker joins a host of other big-name companies this earnings season announcing price …
The thing that is top of mind for investors at the moment is inflation. It seems that on a daily basis, the yield on the 10-year Treasury Note rises as the congress talks about another round of stimulus for the economy. This talk of stimulus has investors worried that it is more than needed, and …
Last week, I posted about Gambling Vs Investing and gave you a step by step guide on how to be an investor. I’ve had some questions about parts of the process, so I thought it would be a good blog post to discuss some of those steps in more detail. So, I thought we would …
Double Click on any Image for a Full Size View It has been a crazy couple of weeks in the stock market. If you haven’t watched the investment news for awhile, you missed a wild ride in a few heavily shorted companies. Gamestop is one of those companies, and in the chart above you can …
