Well, technically a stock is owning part of a process that creates something. There are a finite number of shares. Whereas cash is a medium of exchange which can be created out of thin air.
You can:
Hold cash. Hold fish. Or take a bit of a fishermans regular output.
Stocks and real estate are the best asset class to hold with rising inflation. Stocks are more liquid so I prefer them.
Had you purchased SPY SP500 index shares one year ago you'd be up 30%. As long as the government keeps printing money they will effectively pump the market. From the perspective of the business as long as the supply/demand isn't significantly disrupted the profits will increase with inflation.
Well, technically a stock is owning part of a process that creates something. There are a finite number of shares. Whereas cash is a medium of exchange which can be created out of thin air.
You can:
Hold cash.
Hold fish.
Or take a bit of a fishermans regular output.
Stocks and real estate are the best asset class to hold with rising inflation. Stocks are more liquid so I prefer them.
Had you purchased SPY SP500 index shares one year ago you'd be up 30%. As long as the government keeps printing money they will effectively pump the market. From the perspective of the business as long as the supply/demand isn't significantly disrupted the profits will increase with inflation.
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