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Do stocks and bonds get effected when the currency dips?


Stacey
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I feel like the USD is losing value as time goes on. I know very little about stocks or bonds but I am wondering if they are effected at all by this. Like if the value of the US dollar drops, will this be reflected in stocks or bonds or would it be protected from such a thing and retain the value it had when you invested?

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That is actually a good question and not something I would have ever thought to ask. I know my husband has stocks (and maybe bonds) so I will ask him if he knows anything about this. I feel like your investments would just increase in value rather than lose value because they stay steady on the books. I could be wrong though.

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When the value of the dollar goes down limited asset values go up. 

Likely why the market seems to just go up and up and up. Is it really going up or is the value of the dollar going down? 

We were talking about this with my oldest having her first job and my wife and I were relating back to our first jobs. I had wages from $5.15 per hour to $18 an hour by time I was 18. My daughter just got her first job and is at $13.50 an hour which is over twice the amount my first job paid. All the while though cost of living is much higher then it was when I had my first job. So are people making more money then they did before or is it the same? 

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2 hours ago, James said:

When the value of the dollar goes down limited asset values go up. 

Likely why the market seems to just go up and up and up. Is it really going up or is the value of the dollar going down? 

We were talking about this with my oldest having her first job and my wife and I were relating back to our first jobs. I had wages from $5.15 per hour to $18 an hour by time I was 18. My daughter just got her first job and is at $13.50 an hour which is over twice the amount my first job paid. All the while though cost of living is much higher then it was when I had my first job. So are people making more money then they did before or is it the same? 

Nuts to think about! My first job, I was making $7.50 and hour. Not that same job starts at $11 an hour. The cost of living is going up and thanks to inflation and the USD losing value, that $13.50 is probably more like $8 an hour. Sadly. 

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On 10/12/2021 at 1:40 AM, James said:

When the value of the dollar goes down limited asset values go up. 

Likely why the market seems to just go up and up and up. Is it really going up or is the value of the dollar going down? 

We were talking about this with my oldest having her first job and my wife and I were relating back to our first jobs. I had wages from $5.15 per hour to $18 an hour by time I was 18. My daughter just got her first job and is at $13.50 an hour which is over twice the amount my first job paid. All the while though cost of living is much higher then it was when I had my first job. So are people making more money then they did before or is it the same? 

I think certain things are definitely less affordable now. For one thing even earning less back then, people were able to afford houses a lot easier, but the current generation would have to save a lifetime to purchase a house

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