Investment

Previously This has been a series of posts analyzing investment returns and whether they are positively or negatively correlated with inflation. The final economic sector we are examining is Consumer Discretionary companies. Walt Disney Negative correlation Whirlpool Negative correlation VF Corp Negative correlation However… Comcast Positive correlation Southwest Airlines Positive correlation Implications Much as we […]

The First Seven Parts In the previous parts to this series, we looked at various investments to see how their returns correlated with inflation. We found some that were positive and some that were negative. Today, we are going to see how companies’ returns in the Industrial sectors correlate. Industrials As you will see in

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

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