Inflation and interest rates in the late 70s and early 80s grew rapidly. I remember gas prices doubling, interest rates rising, and gold and silver hitting new highs. Inflation reached 13%. Mortgage rates reached as high as 17% in my area. When mortgage rates dropped, I felt lucky to get a mortgage at 12% in the early 80s. I was also able to get a 5 year CD at 14%. The 20 year treasury bond yielded 15%.
The stock market suffered also. The Dow hit 1000 in 1972, fell 50% and didn't reach 1000 again until 1982.
Will the 70s - 80s happen again? Right now, it looks probable but not certain. To reduce market risk, I'm keeping a large proportion of our investments in short term money market funds. I'm holding back on buying additional stocks and bonds to wait for the direction of interest rates.
This is not financial nor investment advice. Please consult a professional advisor.
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