performance of deflationary assets vs. those which are inflationary since 1960. Content continues below advertisement For most of the past decade, as technology companies increased our productivity and China exported deflation to the Western hemisphere, inflationary pressures were suppressed. Hence, deflationary assets outperformed inflationary assets, but that is starting to change. Here is why: Covid broke supply chains which increased the cost of materials (ask anyone who is doing a home renovation project how much the cost of wood, cement, or tiles has gone up). PC Richards is telling me it is going to take six months for my new stove & fridge to arrive. I ordered them in January, and they anticipate a late June delivery because the manufacturer cannot get the parts to build the products. The worst part is that I am expecting my third child in late June. Good times!