Inflation and Investing

view original post

From blog.commonwealth.com

Inflation and what it means for investing is one of the biggest issues I have been hearing about recently. The topic can generate quite a bit of anxiety. But before we start to worry, let’s take some time to understand what actually happens when inflation hits the economy. Then we can panic—or not. Advantages of Rising Prices What is inflation? At its base, inflation is rising prices. From a company’s perspective, rising prices can be a good thing. Sales, after all, are prices times the number of widgets sold. If the number of widgets sold remains the same—a big if!—rising prices mean higher sales. In fact, … (full story)