To The Moon

In the long run, in the case of pure inflation, where input and output prices rise at exactly the same rate, inflation has no impact on the real value of stock prices and the real returns on stocks will not be affected. The historical evidence overwhelmingly supports this contention.

But the short run is far more complicated. Input and output prices may increase at different rates, depending on whether supply shocks or demand shocks impact the economy. Furthermore, inflation may prompt the Fed to increase real rates to slow the rate of price increases down to their target levels. Finally, our tax system, not adequately indexed to inflation, causes a higher effective tax rate on real capital gains and potentially higher taxes on corporations. For that reason, in the short term, real stock returns are often depressed by inflation.

My financial goals is capital preservation and beat inflation.

Dividend stocks are perfect for me.

In the inflation and interest rates hiking environment, accumulated stocks and collected dividends. In the inflation stable and interest rates cutting environment I can trim position and lock profits.

November 2024, paper loss 10k, or -2%.

Year 2024, dividend income was 20k.

I locked profits from $ThaiBev(Y92.SI)$ in November, only keep 100 shares for monitoring, dividends yield was only 3.8% after Thailand tax at current price, it was much lower than other STI index components.