3min chapter

Animal Spirits Podcast cover image

Is the Fed Trapped? (EP.239)

Animal Spirits Podcast

CHAPTER

What Are the Risks That Are Staring Us in the Face?

Inflation is the one risk that everyone is talking about. So i looked at what happens if inflation is high. Average nominal return was actually pretty good, above six %. But after taking inflation out, it was basely zero because inflation was so much higher. Last year was the second highest ever with inflation above six%. 19 75 was the best one. It was like a 37 percet return to take out the inflation. Even when inflation is really high, stocks do a pretty good job of keeping up,. but that is certainly a risk. And crazy enough. If the fed raises rates, that's really bad for the marketand the market is going to fall.

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