Between 1973 and 1981, inflation climbed by more than 9% a year. Meanwhile, stocks dropped about 4% annually, according to calculations by Amy Arnott, a portfolio strategist at Morningstar.
“In general, inflation is usually negative for stocks,” Arnott said.
CNBC spoke with several financial advisors about how investors can shield their money from inflation — and even take advantage of the climate.
end partial quote from:
https://www.cnbc.com/2021/10/29/investors-are-worried-about-inflation-what-advisors-are-recommending.html
The 9% inflation was mostly caused by the Arab Oil Embargo while the price of Gas at the pump went from 17 cents a gallon in 1969 to around 80 Cents to a dollar a gallon by 1980. So, imagine gas you are paying now 4 dollars a gallon suddenly costing you 20 dollars a gallon? This is actually what happened to cause us 9% inflation here in the U.S. Everything cost more because everyone had to pay 5 times as much for gas as before. Everything you shipped anywhere also cost much more with gas and diesel 5 times as much for ANYTHING to be hauled ANYWHERE on earth at that time.
This ended the golden age in the U.S. where gas and cars cost only a fraction of our wages in the U.S. compared to what they cost now. For example, the minimum wage was around 1 dollar and hour since gas in 1969 was 17 cents a gallon you could work the minimum wage in 1969 and buy 5 gallons plus of gas. Also, at age 16 I could buy a used 1956 Ford station wagon for 800 dollars that I saved and could afford to drive 400 miles a weekend at age 16 in Los Angeles to the beaches, to the mountains, to the deserts with just a part time job after school in High school during the week. Because I had my weekends free I went amazing places with my friends on weekends almost every weekend that the weather was good enough year around.
But, the Arab Oil embargo ended all this for most everyone in the U.S.:
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