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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.