Inflation Experience

It has been thirty years since inflation has been an issue in this country. One would have to be at least 60 years old and have been investing from their early twenties in order to have experienced of investing through the onset of inflation. As a group current investors have little experience dealing with the onset of an inflationary period.

Last night we got a clue as to what inflation could look like. Both Gap and Aeropostale were hit by lower spending and higher costs. Both lowered earnings estimates by greater than 20% and are trading  more than 15% lower.