Jan

26

What are the alternatives to stocks in a deflationary environment?

1. playbook of scenario of Japan since 1990 : )

2. Year book 2012 by Prof. Dimson/ Marsh/ Staunton (or fondly called the optimist trio) has a thorough investigation of historical deflationary events

Or here is a one line summary from Year book 2012:

During marked deflation (in the chart, rates of deflation more extreme than –3.5%), equities gave a real return of 11.2%, dramatically underperforming the real return on bonds of 20.2%

from a sample of 19 countries and 112 year = 2128


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