3.31.21 Stocks and Inflation
As we continue LPL Research’s Inflation Week, today we will examine how stocks have historically done at different inflation levels. For more color on our views on inflation, please read here and here, and look out for tomorrow’s blog, where we’ll examine some of the factors that have kept inflation low and that will likely continue to put a lid on inflation in the future.
Looking at S&P 500 Index returns going back to 1950, stocks have tended to like low inflation. As shown below, the lower inflation is, the better the S&P 500 Index returns tend to be, although the strong performance for negative inflat
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