Hypothetical - Hyperinflation in the US - What Would Happen to Funds?
Hypothetical - Hyperinflation in the US - What Would Happen to Funds?
Hypothetically, if there actually was hyperinflation in the US but the rest of the world stayed stable... what would happen to international funds such as VTIAX? Would the fund value soar along with the inflation since we (US investors) buy the fund in dollars? Would international funds such as VTIAX even protect you in the event of hyperinflation of the dollar?
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Re: Hypothetical - Hyperinflation in the US - What Would Happen to Funds?
So the nominal price in USD would soar, but the real value in terms of money withdrawn (dividends or sales) would be a little more complicated. Because actual hyperinflation means inflations rates of over 20% per MONTH. And in circumstances like that, it actually matters how fast you can obtain and use funds.BHawks87 wrote: ↑Thu Jun 17, 2021 1:48 pm Hypothetically, if there actually was hyperinflation in the US but the rest of the world stayed stable... what would happen to international funds such as VTIAX? Would the fund value soar along with the inflation since we (US investors) buy the fund in dollars? Would international funds such as VTIAX even protect you in the event of hyperinflation of the dollar?
Of course actual hyperinflation is quite rare.