Market Review and Trends
How well did Stocks performed during Hyperinflation during Weimar Republic in Germany
By Investment Moats  •  February 13, 2016
There is a prevailing idea that to combat a very inflationary scenario, you will need a precious metal such as gold or commodities. In today’s discovery, I found a post that relates to how stocks did during the Weimar Republic in Germany, when the country experience a large amount of hyperinflation. The chart plots the stock market during the period in German Marks and USD. Note that the Y axis is logarithmic. The USD is RHS instead of LHS in the Legend. The data is not perfect but had you been in business, you certainly would be doing better than bonds isn’t it? The fact is that underlying to the price ticker on a stock exchange is still businesses with assets. If the assets are selling below a perceived value of what the asset can produce in goods and services, it is still a good buy. As a whole, ......
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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