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FROM: Lisa Sorani, Manager of HR Employee Services LS -

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Inflation’s Impact on Traditional Asset Classes<br />

• Equities and bonds do best under low and stable inflationary environments<br />

• Bonds suffer the most from inflation<br />

• Equities initially do poorly during the onset <strong>of</strong> inflation but generally do better over time as inflation expectations are<br />

built into product pricing.<br />

Source: Morgan Stanley<br />

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