The Return of Stagflation
Stagflation =
Stagnating Economic Growth
+ Rising Inflation
For the first time in a quarter century, the
potential return to the stagflation economy of the 1970s
is becoming a reality. None of the current economic
statistics are signaling an immediate
return to double-digit inflation or the
economic malaise of the 1970s,
but the benefit of hindsight
can now allow for preparing
should we continue along
the current macroeconomic
trends. In the mid
1970s, precious metals
and rare coins saw their
greatest annual
increases yet – over
100% price increases in
gold and 198% increases
in rare coins.
“Many of today’s investors were
still in diapers during the great
stagflation of the 1970s. Those
who weren’t will never forget
the darkest period in modern
financial market history.”
—Stephen Roach, Morgan Stanley Chief Economist
Ben Bernanke, Fed Chairman
