If we see high levels of inflation like we did in the 1970’s having all your money in stocks could be dangerous

In the 1970’s the S&P 500 fell in absolute terms and was down even MORE factoring in inflation.

Why?

Most companies do not have pricing power.

Example

One of two things happen when we see inflation

Profits when
Demand is Flat
Pricing is Flat
Costs

Or

Profits
Demand
Pricing
Costs

Few companies can charge more and have demand stay the same (ie demand is inelastic)

So what should you do?

Have exposure to commodities like

-Gold $GLDM
-Silver $SLV
-Cash Flowing Real Estate $VNQ is a good start
-Art
-And of course #Bitcoin

Why?

Because the supply is limited for all of the above and the money printer is not stopping any time soon.