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For instance, the idea that peoples’ expectations, about the stock market and what to expect from life in general, is seared into young adults depending on how the world was when they came of age seems a stretch. Generally, intelligent people are more reactive and flexible than that. 21years old in a high inflationary period? Then high inflation is your expectation, or fear, always? Doesn’t make a lot of sense. Conditions change. Memory has proven to be much more short term. A fifty year old isn’t likely to be fretting about a high inflation rate because inflation was high when he was 21.

I'm no dummy, usually, and I can say with certainty that kelbon is precisely correct on this, at least in my case. I was in my early 20s in the Carter years; stagflation, etc. We may well be headed back to some version of that...which is what my spidey sense is telling me; rising interest rates and cost of capital, lower real wages, over-extended markets. I wish I'd been paying attention and taking notes, but I was my 20's. My kids are in their 20's. They have other fish to fry (we do their small bits of investing for them).

So...I was in my 20s in the Carter years, which means I am now headed into my retirement years. I have been spending a lot of time looking at what was going on in the markets during stagflation and what happened after; what were the catalysts, what is different, and what should our plan be as we head into our retirement years? Nowhere to hide. Reminds me of the founder of this board, actually. Where is she anyway?

My conclusion so far? Find high quality dividend paying companies that are at attractive valuations.

Oh, and don't stop working and saving.


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