2 ms·
If we see inflation coming, it's complicated for value vs. growth. On one hand, value benefits because they are usually more debt-laden companies and the debt i
by reducesuffering 6y ago
If we see inflation coming, it's complicated for value vs. growth. On one hand, value benefits because they are usually more debt-laden companies and the debt is debased more over the years, which is generally good for value.
On the other hand, if interest rates are the same (basically 0; dollar now is only better if you can immediately gain interest on it), then inflation isn't great for value because the growth companies have most of their dollars to be made in the future where it's inflation-adjusted.