One of the reasons why investors flock to the safe-haven assets is to protect against inflation. For instance, buying gold traditionally protects against inflation when gold is denominated in the same currency.
With central banks lowering the interest rates to the zero level, investors had a hard time finding the much-needed yield. As such, they flooded the stock market.
Higher stock market prices are a must in the context of the new Fed’s mandate of…
The post Higher Inflation Does Not Automatically Means Higher Stock Market Prices appeared first on Vantage Point Trading.
No comments:
Post a Comment