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Tip of the Day Diversify Your Portfolio

Diversify Your Portfolio - One sure-fire way to lose money in the stock market it to invest too much money into one share or one company. The best way...

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Hyperinflation

Definition: Hyperinflation is extremely rapid inflation.html">inflation.  During hyperinflation, the cost of goods rise at an extraordinary rate.

TeenAnalyst Advice: Hyperinflation usually occurs in small, third world countries with less currency stability.  In the United States, our average inflation rate is about 3.5%, however it has been as high as double digits in the 1970's.

The most famous case of hyperinflation occurred in Germany in the 1920's.  Inflation was so out of control that it was cheaper to burn German currency for heat than it was to use it to buy firewood!

 

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