What Inflation’s History Tells Investors

During the early-to-mid 2000s, investors experienced a brush with inflation. They got off easy that time around. Before that, it was the 1970s when investors experienced a more serious era of inflation.

Many investors were not prepared, unsure of how to protect their portfolio during these uncertain times. But, are investors any more prepared today?

In the excerpt above, David Schassler, Portfolio Manager of the Inflation Allocation ETF, RAAX, at VanEck takes a look at the previous cycles, the increase in money supply, and what that means for supply disruptions.

Inflation Timeline

  • The 1940s
  • The 1970s
  • 2008
  • 2020

Video Transcript Below

David Schassler:  If you go back and look at the previous cycle, so go back and look at the 1970s. We had a massive increase in the money supply at the same time that we were very reliant on foreign imports of oil. Which, again, increases the money supply, puts it’s a big spotlight on where you’re vulnerable. Then you had an increase, a big surge in the price of oil, relative to the US dollar.