3 ms·
> Open question: won't inflation lead to mechanically higher stock prices, specially if it's demand driven? this has been answered already but I want to add so
by kobalsky 5y ago
> Open question: won't inflation lead to mechanically higher stock prices, specially if it's demand driven?
this has been answered already but I want to add something that wasn't mentioned: if you are thinking about it now, the market thought about it months before you and it's probably already baked in the current price.
so don't expect a 10% increase in 1 year on spy even if everything goes up 10%. that 10% was grabbed by the better informed the moment the money printers were turned on.
- shostack 5y agoWhich raises the question of how the bogleheads strategy weathers an inflationary economy. Since apparently that's all Main St. can do.