Saturday, November 10, 2012

Rising Stock Prices Don't Mean Much in a HyperInflation Environment

The stock market has been rising steadily in the United States since 2008. Great news right? Not necessarily.

During the German Weimer Republic stock prices rose as well. But, what prices due to hyperinflation rose faster than the rate that stocks rose.

The same thing could happen in the United States. If we go through a period of hyperinflation, stock prices will go up, but selling a share of stock won't get you as much as it once did.

Hyperinflation-Weimar-Republic-425x531

Source: http://neilski.typepad.com/chicago_gold_and_silver_i/2012/11/rising-stock-prices-dont-mean-much-in-a-hyperinflation-environment.html

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