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Stocks As A Hedge Against Inflation?


guitarman001

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There have been several comments lately about how currency devaluation has prompted people to move into NS&I.... or buy shares. Buy how does buying shares help yuo against inflation? Unless I have read this wrongly...

Buying Tescos, for example, want see massive gains but the value of the stock will rise naturally with inflation. Long term, greater than 10 years, you generally make a profit in stocks.

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Buying Tescos, for example, want see massive gains but the value of the stock will rise naturally with inflation. Long term, greater than 10 years, you generally make a profit in stocks.

*cough* The FTSE 100 peaked at end 1999 IIRC at around 6900 and hasn't got to that point since -it's at 5180 at the mo'!

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*cough* The FTSE 100 peaked at end 1999 IIRC at around 6900 and hasn't got to that point since -it's at 5180 at the mo'!

Don't shoot the messenger. :) Last decade has seen shares under perform. Think everyone was putting their money into more non-liquid assets, read as homes.

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Can't see better than the Index-linking + 1.00% AER Tax-free NS&I you mentioned.

If someone bought a £100 certificate January 2010 it would now be worth £103.22

In the event of default, can the government fulfil all NS&I promises without leading to out of control inflation?

I have 8k in myself a year ago :angry:

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Guest absolutezero

*cough* The FTSE 100 peaked at end 1999 IIRC at around 6900 and hasn't got to that point since -it's at 5180 at the mo'!

Have you considered dividends in that?

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*cough* The FTSE 100 peaked at end 1999 IIRC at around 6900 and hasn't got to that point since -it's at 5180 at the mo'!

Try looking at an individual stock instead.

The post you followed up to said Tesco. They're up over 100% since any date in 1999, and that's before you factor in the dividend.

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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