4 ms·
Which isn't what's happening. It's been months now that this was being floated, and the stock market has been volatile the last half year, an outright bear mark
by trgn 5y ago
Which isn't what's happening. It's been months now that this was being floated, and the stock market has been volatile the last half year, an outright bear market in some sectors. Trillions in equity have evaporated already, and that's not even taking into account the wealth erosion of high inflation.
Now's the time to be skilled, but not the time to be a rentier.
- paulpauper 5y agoProbably half of that selling is due to Ukraine . Also, a few months of weakness does not change the long-standing trend of stocks being a good hedge against inflation. Stocks generated real returns in the 80s, 90s, 2003-2007, 2015-2017 despite the fed raising rates.
- adam_arthur 5y agoBecause valuations were low. Inflation is only good for asset pricing once that asset has been valued with an inflation appropriate discount rate. e.g. a 100 PE stock that implies a 1% return/year logically should fall significantly in a 5%+ inflationary environment. Once bond yields adapt to this environment.