High Inflation: How Markets React
Inflation has been soaring in many rich countries for the past year – heading towards double-digits and reaching levels not seen since the 1980s. To read more of our analysis on Capital.com, go here: https://bit.ly/3V3q91N
We've examined data for five key asset classes – the U.S. dollar, gold, U.S. stock sectors, oil and U.S. Treasury Bonds – to explain how they have historically performed when the U.S. rate of inflation pushes above 5%.
0:00 Are we in an era of high inflation?
01:00 How the markets react during high inflation
01:49 Why is inflation problematic?
02:45 How do energy commodities perform during high inflation regimes?
04:39 Is gold always a good hedge against inflation?
06:30 What happens to the US dollar during high inflation?
07:35 How do bonds perform during high inflation?
08:45 How do different US Stock sectors perform during inflation?
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