High Returns in Spite of Stagflation: These are The Best Performing Industries in the Face of Currency Devaluation
- Historical Data shows that utilities perform best during stagflation
- Communication services perform worst
- Much less enthusiasm among investors than during the coronavirus peak in 2020
- The best stock exchanges so far in 2022: Turkey, Qatar, Saudi Arabia, Bahrain and United Arab Emirates
May 20, 2022 (Investorideas.com Newswire) Pandemic, supply chain bottlenecks, Ukraine war: the inflation spiral is in full swing, and more and more expect stagflation, a weaker economy with increasing currency devaluation. A new infographic from Block-Builders.net reveals how investors are currently responding and which sectors could perform best in the near future.
As an analysis of historical data shows, utilities tend to fare best during periods of stagflation. In this case, the relative return per annum (of US sectors compared to the overall market) is 10.1%. Consumer staples (6.4%) and energy (3.7%) have also posted positive returns. These are the three sectors that have performed best in similar economic situations in the past.
At the other end of the scale are communication services (-11.3%) and finance (-9.6%).
But how does the current situation affect demand among current and prospective investors? Google search engine data give some indications. As the infographic illustrates, the relative search volume for terms such as "shares", "ETF" or "stock market" is at a moderate level these days. At the start of the coronavirus pandemic in 2020 and even in 2021, these investments seem to have been much more popular with the bulk of investors.
As the study shows, the best performing stock exchanges in 2022 are not to be found in the West. The most positive trend is in Turkey, followed by Qatar, Saudi Arabia, Bahrain and the United Arab Emirates.
It is also noticeable that in the face of the multiple crises, citizens - both in Germany and internationally - are less inclined to save money or make provisions for retirement. There is simply a lack of confidence, even in the traditional pension system.
The full story with the infographic, facts and more statistics: https://block-builders.net/high-returns-in-spite-of-stagflation-these-are-the-best-performing-industries-in-the-face-of-currency-devaluation/
Block-Builders.net is a news and information platform that publishes forecasts, investment news and background reports.
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