Stock Market During Hyperinflation

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Dorky's picture
Dorky
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Stock Market During Hyperinflation

Real estate during hyperinflation is widely discussed.

But what about the stock market, in general as well as specific corporations, during hyperinflation?

Can we say all listed corporations will go up along with hyperinflation?

Or only corporations in specific industries?

How will the fundamentals work out in each industry?

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ao
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Dorky wrote: Real estate
Dorky wrote:

Real estate during hyperinflation is widely discussed.

But what about the stock market, in general as well as specific corporations, during hyperinflation?

Can we say all listed corporations will go up along with hyperinflation?

Or only corporations in specific industries?

How will the fundamentals work out in each industry?

During the Weimar Republic hyperinflation, the German stock market went up thousands of percent while gold went up billions of percent.  In other words, stock holders got slaughtered.

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Dogs_In_A_Pile
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Joined: Jan 4 2009
Posts: 2606
Dorky wrote: Real estate
Dorky wrote:

Real estate during hyperinflation is widely discussed.

But what about the stock market, in general as well as specific corporations, during hyperinflation?

Can we say all listed corporations will go up along with hyperinflation?

Or only corporations in specific industries?

How will the fundamentals work out in each industry?

What are fundamentals besides a product marketed to the masses by the investing and financial management industry?

Fundamentals don't matter.  Price movement matters.  Up or down.  That's why a market neutral approach to trading and investing is critical.

Trade in the the direction of the general market, with event awareness, on price moves that match historical expectations - not concerning yourself with an up or down day.  Take a chunk of the move the market gives you instead of staying around hoping for what you want. 

Ahh, what do I know............

Dorky's picture
Dorky
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Posts: 17
ao wrote: During the Weimar
ao wrote:

During the Weimar Republic hyperinflation, the German stock market went up thousands of percent while gold went up billions of percent.  In other words, stock holders got slaughtered.

Are you sure the stock market gone up just thousands of percentage and not some billions of times over?

ao's picture
ao
Status: Diamond Member (Offline)
Joined: Feb 4 2009
Posts: 2220
Dorky wrote: ao
Dorky wrote:
ao wrote:

During the Weimar Republic hyperinflation, the German stock market went up thousands of percent while gold went up billions of percent.  In other words, stock holders got slaughtered.

Are you sure the stock market gone up just thousands of percentage and not some billions of times over?

I can't recall the exact source of where I read that.  It may or may not have been the article in der Spiegel about the WR hyperinflation.  But from the experiences of relatives in Germany, stock ownership was not the way to go.  I would look into modern hyperinflationary events (of which there have been about 20, if I'm not mistaken, since 1980) and see what you find.  Good searching.

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