Total economic inflation from 2003-2007 was almost 100%.
The DJI went from 8,000 to 12,000 during that same period. That’s nowhere near a 100% gain.
Maybe you are talking about emerging markets or something? I’ll agree *some* stocks beat inflation during that time period; but the domestic indexes surely did not.
Oil went from $27 to $63 a barrel during that same time period, however. Gold went from $300 an oz to $700. Both were much, much better investments than stocks during the above mentioned time frame.
Your mistake is assuming that commodity prices correspond 1:1 to inflation. They do not.
Except when they do. Like now.
Oil declined 68% from 1980 to 1998.
I rest my case.
Uh, yeah the Fed hiked interest rates in the 80’s to kill inflation; plunging the US into a major recession. Good thing too.
Unsurprisingly, this was reflected in the price of oil. The exact opposite is happening now.
This really isn’t so hard to understand, you know.
