The definition of stagflation according to Oxford dictionary is: persistent high inflation combined with high unemployment and stagnant demand in a country's economy. Although the US economy does not present high unemployment yet, as demand slows due to #fed #ratehikes, #unemploymentrate should rise. Investing during stagflationary periods is not easy, and according to the research by #bridgewater associates below, we’ve only been in this environment 18% of the time since 1960. It also concludes that few asset classes work in a stagflationary environment: #inflation linked bonds, #gold and broad #commodities. #Equities and #realestate do not perform well in these environments.
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