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The Stock Returns are related to Inflation?




Inflation is the rate of money is being devalued with respect to a defined weight. The rate of U.S. $ leans against other currencies. Normally you could use a purchasing power of currencies like the peso.

For example.

Coffee used to be 50 cents per 10-ounce cup at a winery, it is now generally more than $ 1. If I purchased $ 1,000 worth of stock in 1996 and is now worth $ 1,500, could have had more coffee in 1996 than it was today. This is an example of inflationary pressure.

Is There a relationship?

 
A particular action is unrelated to inflation than the one based on the power to devalue. Depending on what actions are being invested in could be worth more or less in relation to inflationary pressure, but in reality there is no relationship in general.

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