Inflation affects almost all global economies. In Russia, it is caused mainly by economic factors. But in the US the key reasons for inflation are the declining value of the dollar and increased money supply. A different economic climate is to blame for it. While Russians get used to steadily rising prices, Americans are concerned about the depreciation of their savings. High economic growth, soaring inflation, and low interest rates are the main reasons for money devaluation. This is what the US is facing right now. All these economic factors contribute to the depreciation of the US dollar. Russia is dealing with the same problem. However, the US faced this challenge because of a great oversupply of money in the population and strong financial assistance programs for those who suffered from the pandemic. Americans with life savings are facing a difficult choice now. The first option is to invest in safe-haven assets, although there is a high probability that they will get less than they invested. The alternative is high-risk investments. The stock market is currently undergoing rapid growth and is expecting a higher yield. Thus, it guarantees protection against inflation. Corporate profits, which determine the value of assets, are now skyrocketing in the US. But in this case investors should always consider the risk of a stock sell-off that would make the shares plunge.
