Does higher inflation hurt stock market returns?

Just looking at the return you are getting does not paint the full picture, ie is your buying power growing or falling over time?

Please see the following short video from Dimensional fund advisers looking at this question.

Cash interest rates look more attractive at the moment, however the current interest rates are as a result of higher inflation levels and in most cases your real return is negative once you take into account inflation. Obviously stock market investments can fall in value as well as rise, so independent advice is recommended before you make any decisions.

If you would like to discuss this further or have any questions on your wealth Management, please do not hesitate to contact us online or on 01945 581937

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