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High corporate profits and high inflation are all a result of government's fiscal policies, though. The point is that this is not just because Wall Street has h
by gargs 4y ago
High corporate profits and high inflation are all a result of government's fiscal policies, though. The point is that this is not just because Wall Street has had a mood swing.
- koheripbal 4y agoHigh corporate profits? Are we looking at different stock markets?
- Hikikomori 4y agoWhat does corporate profits have to do with the stock market?
- CoffeeCollector 4y agoHigh corporate profits = higher share price ???
- Retric 4y agoActual profit is a backwards looking statistic, stock prices are a prediction of future profits.
- koheripbal 4y ago"stock prices are a prediction of future profits." No better prediction of future profits, than current profits.
- Retric 4y agoIf that was true you wouln’t see such wildly different P/E ratios. Current profit isn’t irrelevant, but it doesn't tell you much especially if the company just lost money.
- epakai 4y agoYou can also attribute those to supply chain issues. Government fiscal policy can't be the scapegoat for issues affecting the entire world (not arguing they don't have influence).
- gargs 4y agoThat's very true, but in the end fiscal policy is how the government regulates corporate profits (taxation) and inflation (spending/social security/subsidies). Before the supply chain issues, inflation was on no one's mind and the primary concern was a recession caused by the virus. So, governments pumped unseen amounts of money into the economies to keep them chugging, this after they'd not pulled back from the stimulus that was put into effect after the 2008 recession.