What stocks to invest in high inflation economy?

Discussion in 'Trading' started by qll, Apr 19, 2007.

  1. qll


    China is growing GDP at 11% and inflation at 3.3%
    What stocks to invest, and what to avoid?
  2. We will be talking about deflation in three months.
  3. billdick


    No "stagflation."

    In fact it is already here (in US) if defined as the ratio GDP/(inflation rate) <1.

    In China's case this ratio is almost 3 as the just revised Q1 GDP = 11.1%
  4. qll


    so what do you invest? retail, housing, bank, textile, car? higher interest will hurt many, but i remember in 2000, when fed is tighting rate, the market is just keeping going up, until very crazy. in china the market is hot, but not yet overheated.
  5. billdick


    Five years ago, in ADRs. Two years ago, in small developmental drug companies, a few months ago, in TIPs.
    Details as to why are in my reply to Kowboy in post at:

    I agree the market will keep going up. In fact I have several times posted prediction that the DOW will be pushing 15000 early in 2008! But you must understand that the DOW is expressed in dollars, which are rapidly losing value. - Thus even if net real worth of the DOW is lower then, it will take more dollars to buy it. - This is part of the trick the IRS will play on you to help pay US's debts - I.e. tax you on "false gains."