About Stocks: Inflation Worse than Recession for many Stock Investors

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	from Ken Little Pity poor Ben Bernanke and his colleagues at the Federal Reserve. If they stimulate the economy to lessen the impact of a recession, the inflation hawks are after them for lowering interest rates, which may feed inflation. If the Fed does nothing about the recession (and potential collapse of the financial system), they are hammered for being asleep on the job. As Paul Krugman noted in a recent New York Times column, Ben's bunch can't win. The course between recession and inflation is a tricky one to navigate. However, if it is a choice between a recession and inflation gone wild, everyone is ultimately better off with a recession even though it may be hard to convince those who lose their jobs due to a slowing economy.
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Inflation Worse than Recession for many Stock Investors The market seems to be getting over its recession blues, but concerns are rising about inflation. Recent reports that prices at the wholesale level are rising at a rate faster than any time in recent years is having a chilling effect. While a recession is bad news for the markets, inflation can be worse. Bonds and other fixed income products take a beating.             More Topics Glossary of Stock and Investing Terms Investing 101 Stock Basics and Types of Stocks Finding a Broker The Basics of Trading Stocks Free Investing 101 E-Mail Course Trading Basics How to Identify the Bottom of the Stock Market Do you want to know the exact date the stock market hits bottom and begins a true rebound during a bear market? This is a magic date because stocks often post substantial gains coming out of a bear market and the biggest percentage increases happen early in the rebound.   Consider Some Domestic Stocks Foreign Investments Investing in global or international stocks is a good way to diversify your portfolio and profit from other economies.     Sponsored Links   Just for Grads Gifts & Celebrations for Graduates Get tips on celebrating the graduate in your life, from party planning to smart gifts and fun gadgets.

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