Protecting your portfolio from deflationPresentation Transcript
Protecting your portfolio from deflation Sille Liiv
Deflation What is deflation? When does deflation occur? Results?
The fear of deflation December 17 release of consumer price data for November. Fastest rate of price decline in 61 years. Fed`s(Federal reserve Board) target shifted to preventing widespread deflation.
The negative impacts of deflation The dreaded “D” word. First falling prices – then cutting wages and axing jobs. Boosting the value of dollar – raises the cost of repaying debt.
Economist`s views of deflation fear Barry Boswell Josep Trevisani Still even optimistic economy watchers prepare for defense – identifing the sectors which provide goods and services consumers and businesses can`t do without.