CHART: Stocks Love A Little Inflation

This weekend we featured JP Morgan Funds' Q1 Guide To The Markets published by David Kelly.

One chart that jumped out at us, showed the performance of stocks, bonds, cash, and commodities in various inflation environments.

This chart acts as a reminder that inflation is good for stocks because everyone anticipates that corporate revenue will grow at the same pace as inflation.

Notice when inflation is low and rising — an inflation environment that has occurred seven times since 1972 — stocks have seen returns rise 20 percent. And in a high and falling inflation environment, that has occurred six times since 1972, stocks have returned 23 percent.



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Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.2576-0.0005-0.04%
    USDSGD=X
    1.7396-0.0006-0.03%
    EURSGD=X
    2.1135-0.0003-0.01%
    GBPSGD=X
    81.3744+0.0824+0.10%
    SGDJPY=X
    6.1655+0.0028+0.05%
    SGDHKD=X
    2.6008+0.0025+0.09%
    SGDMYR=X
    9,224.7266-31.2998-0.34%
    SGDIDR=X
    4.9725+0.0055+0.11%
    SGDCNY=X
    1.1666+0.0013+0.11%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,292.10+1.50+0.12%
    GCM14.CMX
    19.55-0.14-0.70%
    SIK14.CMX
    91.62-1.25-1.35%
    ^XAU
    3.120.00-0.02%
    HGK14.CMX
    102.00+0.06+0.06%
    CLM14.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.74+0.03
    ^FVX
    2.690.00
    ^TNX
    3.460.00
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    2.22+0.010+0.45%
    JS8.SI
    1.18+0.030+2.61%
    U6C.SI
    0.122-0.001-0.81%
    B22.SI
    1.34-0.015-1.11%
    G13.SI
    0.605-0.010-1.63%
    E5H.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    1.315+0.084+6.82%
    O9A.SI
    0.16+0.008+5.26%
    5HH.SI
    0.193+0.009+4.89%
    KF4.SI
    0.23+0.010+4.55%
    D6U.SI
    0.935+0.035+3.89%
    M01.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.10-0.010-9.09%
    CL7.SI
    0.151-0.009-5.63%
    A03.SI
    0.30-0.015-4.76%
    K29.SI
    0.20-0.010-4.76%
    5CH.SI
    0.205-0.010-4.65%
    510.SI