Are stocks an inflation hedge?

Is there a relationship between inflation and stock returns in India? A recent study that looked at monthly data between 1994 and 2014 shows that there is no significant pro-cyclical inter-dependency between inflation and stock returns.

However, the paper does not present the results of any statistical significance tests. This leaves the reader at the mercy of trying to interpret pretty pictures of wavelet transforms.

On the Dynamics of Inflation-Stock Returns in India

If you enjoyed this post, please consider registering to get a weekly digest of our articles.
Get in touch with Shyam for advice on mutual funds. You can either WhatsApp him or call him at 080-2665-0232. He is an AMFI registered IFA who can advice you on Franklin, Blackrock, IDBI, Mirae, HDFC, ICICI Pru, UTI, Sundaram, Reliance, Religare, Peerless, Tata and Birla Sun Life funds.