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The Return to a Deflationary World post COVID: Eric Basmajian

Inflection Point

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Investing in a Deflationary Environment?

When the growth rate in the economy, growth or inflation, a nominal growth, is increasing, stocks tend to out perform bond s. Conversely, when growth and inflation are coming down, you tend to see an out performance of long duraio treasury bonds over stocks. And within the equity universe, you see a defensive type investments like utilities, consumer staples and large capte performing the best.

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