Because 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 P

Because 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.