Skip to main content


 What is stagflation? Stagflation is an economic state where we have both below economical states happening simultaneously, inflation and no growth.  We can have periods of inflation, we can have periods of no growth, but when we have them together, we call this stagflation.

So, stagflation is when we have both:

  1. We have inflation
  2. We don't have growth
Let's define inflation, we have two mainstream definitions:
  1. Price inflation – the prices are getting higher
    1. We have a measure of a few goods in a basket – warning which goods
    2. The weight of these goods in this index changes over time to reflect their real life ratio
  2. Monetary inflation – increase in money supply
    1. Usually increase in money supply should reflect the actual economic growth
We actually see big inflation in a combination of both price inflation and also monetary inflation.  During inflation periods, we have brief stagflation periods.

Presently, we have over 4 decades of disinflation, but since 2020+ we started having commodities scarce and combining this with the monetary inflation we now have inflation that could start a new period.

What to invest during stagflation:
  1. Bonds – not good relative fixed yields
  2. Stocks – Medium they rise, but they have issues planning for future due to instability in currency
  3. Real estate – better but not liquid
  4. Industrial Commodities – best could be unstable at first – part of definition of inflation rise in prices of commodities.
To summarize, good investment during stagflation
  1. Cash and bonds do not give us any protection from inflation very minor
  2. Stocks are only moderate inflation defense
  3. Anything with fixed rate yield like bonds is not good
  4. Commodities while volatile, while good, can also be volatile in prices
  5. The industrial commodities are much better like oil, nickle, uranium
  6. Gold is also good during inflation and slow growth – during stagflation
The current best book to understand the global economic state


Popular posts from this blog

Dev OnCall Patterns

Introduction Being On-Call is not easy. So does writing software. Being On-Call is not just a magic solution, anyone who has been On-Call can tell you that, it's a stressful, you could be woken up at the middle of the night, and be undress stress, there are way's to mitigate that. White having software developers as On-Calls has its benefits, in order to preserve the benefits you should take special measurements in order to mitigate the stress and lack of sleep missing work-life balance that comes along with it. Many software developers can tell you that even if they were not being contacted the thought of being available 24/7 had its toll on them. But on the contrary a software developer who is an On-Call's gains many insights into troubleshooting, responsibility and deeper understanding of the code that he and his peers wrote. Being an On-Call all has become a natural part of software development. Please note I do not call software development software engineering b

SQL Window functions (OVER, PARTITION_BY, ...)

Introduction When you run an SQL Query you select rows, but what if you want to have a summary per multiple rows, for example you want to get the top basketball for each country, in this case we don't only group by country, but we want also to get the top player for each of the country.  This means we want to group by country and then select the first player.  In standard SQL we do this with joining with same table, but we could also use partition by and windowing functions. For each row the window function is computed across the rows that fall into the same partition as the current row.  Window functions are permitted only in the  SELECT  list and the  ORDER BY  clause of the query They are forbidden elsewhere, such as in  GROUP BY ,  HAVING  and  WHERE  clauses. This is because they logically execute after the processing of those clauses Over, Partition By So in order to do a window we need this input: - How do we want to group the data which windows do we want to have? so  def c

Building Secure and Reliable Systems

A recent book was published this year by Google about site reliability and security engineering, I would like to provide you a brief overview of it and incorporate my own analysis and thoughts about this subject while saving you some time from reading, at least part of it. Take a few of your customers and ask them, what are the top 5 features on my product that you like.  The answer that you are likely to get is, I really like how polished the UI is, or the daily report I get by mail is just fantastic, or since I started using your product I was able to save one hour a day my productivity got up and the share /chat button on document that you added recently is doing a great job. Your customers are very unlikely to answer the question of what top 5 features of my product do you like with I really like its security or I really like that we lost no chat messages since I started using it.  No real customer will even think of it, moreover, assuming you did a very good job, they won&#