the inflation era: winners and losers
Potential Winners and Losers: In an inflationary environment: o Losers: Long-duration bonds, high-growth tech companies reliant on cheap capital, and heavily indebted entities vulnerable to rising interest rates.
o Winners: Real assets like commodities, infrastructure, and companies with pricing power or exposure to supply chain restructuring.
kaustubhs • Inflationary_Cycles
Loose monetary policy created asset-price inflation, but ordinary people mostly just felt the effects of rising prices. Unlike the wealthy, they didn’t benefit much from the rising asset prices in their portfolios.
Basically, if someone went into these past couple of years owning a house with a low fixed-rate mortgage, a portfolio of financial assets, and decent income, then they’re probably feeling pretty okay right now, economically speaking. However, those who didn’t manage to get a house before mortgage rates rose sharply, and/or who don’t have a lot of
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