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URL:  https://boards.fool.com/lets-hope-we-dont-have-a-period-of-stagflation-28993452.aspx

Subject:  Re: Retirement Port Behavior 2000-2010 Date:  12/31/2010  10:54 AM
Author:  tjscott0 Number:  68041 of 100438

Let's hope we don't have a period of stagflation like in the 1970's.

Let's take a look at a 15 year slice of US data from January 1969 to January 1984.

S&P 500 true CAGR return=.-83%*
$1.00 grew to .89*
total inflation= 186.24%**

The stock market traded sideway & the dollar was worth only 35 cent in 1969 value.***

Price of gold 1969=$41.28****
Price of gold 1984=$424.00****
price of gold taking inflation into account $424x.35=$148.40
a 359% return

Price of silver 1969=$1.81*****
Price of silver 1984=$9.12*****
price of silver taking inflation into account $9.12x.35=$3.19
a 176% return

In that period of time one would be better off holding gold &/or silver.
The future? Beats me.

Ladies & gentlemen, Place yer bets.

*http://www.moneychimp.com/features/market_cagr.htm
**http://www.inflationdata.com/inflation/Inflation_Calculators...
***http://www.dollartimes.com/calculators/inflation.htm
****http://www.nma.org/pdf/gold/his_gold_prices.pdf
*****http://goldmastersusa.com/silver_historical_prices.asp
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