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Only some equities are inflation proof. Other equities will be crushed by inflation because inflation will put pressure on higher interest rates and companies w
by JanisL 5y ago
Only some equities are inflation proof. Other equities will be crushed by inflation because inflation will put pressure on higher interest rates and companies with high debt loads will get crushed by higher rates.
- abduhl 5y agoHigh debt loads are relatively easier to carry as inflation spikes. Inflationary pressures on interest rates will only hurt companies who need to roll over their debt. Most companies will realize that going to the market by issuing new stock is a cheaper cost of capital.