Everywhere we hear inflation is going to be the next big thing. So far it has not. But my belief is it is coming soon. My way of thinking is that it will not hit as long as unemployment does not go down. Once unemployment goes down then, next thing which will happen is people will have more money to spend and will be willing to pay more. Also the extra money that government has put into the market will also start flowing. So with lot of money in the market flowing ultimately prices of the goods will grow.
With that said the prices of real estate will also grow and dollar will devalue. So the best place to invest during inflation is in the products that are existing like land, gold etc.
You can see the similar inflation problem in developing countries like India.
What is your view about investing during inflation?
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