What is stagflation & it’s impact on your investments?

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Before understanding how stagflation affects us and our investments it’s vital that we know what the term actually stands for. As per simple definition we can say that stagflation is a situation where neither inflation nor deflation exists. When we go by mathematical interpretations we can say stagflation occurs when core customer basket prices change between 0.5% to -0.5% for an extended period of time. This extended period of time lasts at least for a year. The term core consumer basket is the selection of basic goods and services which are the common necessities which every member of the economy requires to survive. It includes items such as bread, staples, etc.

So how does stagflation affect investments? [click to continue…]

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