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It's funny if investors demand 10% ROI nobody blinks an eyelid, but if if wages are go up suddenly everyone talks about inflation. Do investors returns not incr

• refurb 5y ago
  ROI can go up with no impact on prices, that’s why.
• onion2k 5y ago
  If investors decided to demand 1,000,000% ROI we wouldn't suddenly have hyperinflation. Investors can 'demand' whatever they like; there's no guarantee they're going to get it, and most of the time they won't. It's just their way of exerting control over a company. When wages go up they actually go up, which, at least according to conservative economic theory, leads to inflation. In practice though it often doesn't.
  • lotsofpulp 5y ago
    > . Investors can 'demand' whatever they like; there's no guarantee they're going to get it, and most of the time they won't. And yet it is all hands on deck with both political parties when the stock market does not deliver 10% annual growth. It is pretty clear that the weight of the federal government and the federal reserve is behind making sure VOO keeps consistently going up over the timescale of decades if not a few years. But when wages for the bottom 80% stagnated for decades, there is debate on whether or not anything needs to be done.
• imtringued 5y ago
  If investors demand 10% ROI they will just sell under performing stocks and buy better performing stocks. You're confusing ROI with interest. When lenders demand 10% interest you can bet that the interest payments are being passed onto consumers.