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Well, with things like inflation these stocks HAVE to go up. A dollar in 2022 is stronger than a dollar in 2020... This isn't what the word "inflation" means?
by jessaustin 6y ago
Well, with things like inflation these stocks HAVE to go up. A dollar in 2022 is stronger than a dollar in 2020...
This isn't what the word "inflation" means? Besides inflation is not that high now. (Admittedly, it's not as low as we pretend it is...)
- JakeTheAndroid 6y agoYeah, someone else corrected me here as I inverted inflation in the wrong direction. It doesn't change the logical premise of the strength of money changing is what will motivate increased value in stocks either way. I was tired and only half paying attention, but I should have vetted this better before posting it. My bad.
- jessaustin 6y agoNo worries, but I remain unconvinced. There are nations that have seen high inflation, and that hasn't been so good for their stock markets.
- lkjaero 6y agoLow inflation and high inflation are entirely different things, especially if you mean hyperinflation. During high inflation, monetary transactions break down because nobody wants to hold cash. Why would you sell things today if you would be better off selling tomorrow? Business breaks down, and that's reflected in the stock market.