Despite the fact that stocks have moved steadily higher over long periods of time, history tells us that bear markets (an extended 20% or more decline) and other difficult patches aren't permanent. The good news is that corrections (a 10% or more drop), bear markets (extended periods of 20% or more declines), and other difficult patches haven't lasted forever.
Shrinkflation: The Silent Economic Threat That's Affecting Your Everyday Life When the price of anything rises, that means the value of that item has decreased. Shrinking prices are just that: the price of something is decreasing. These two phenomena can be difficult to tell apart, but they are very much connected. Shrinking prices are the result of inflation. The price of something is rising so it makes sense that you would pay more for it over time. So, how can you tell that you’re seeing the effects of shrinking prices instead of just seeing a natural rise in prices? Here are some of the most common signs.
Since 2007 international stocks have lagged the returns of U.S. stocks. So, are global stocks worth investing in if they have not generated superior returns to U.S. stocks in recent years? After all, by investing in international U.S. stocks, wouldn't I get enough exposure to global economies? To answer these questions, we must discuss the potential gains from diversification.
STORY HIGHLIGHTS 17% name inflation as nation's most important problem; 4% cite gas prices Mentions of the coronavirus as top problem are lowest of the pandemic Six in 10 worry a great deal about inflation, leading most other issues
In 2019, during the COVID-19 pandemic, I primarily stayed at home to avoid sickness. As a result, I was consuming less food because I just ate what was already in the refrigerator rather than going out to lunch. That year, my doctor said that I was one of her few patients who lost weight during the pandemic. Fast forward to 2022, when I resumed work and started going out for lunch again. Two weeks after returning to the office, my doctor told me that I had gained 8 pounds--in two weeks! Not only did weight gain reoccur, but I was spending $400 on lunch a month! And every time I went to my favorite diner, I would see signs that read, “If you really liked us, you would eat more.” Obviously, I complied!