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Wouldn't inflation mean equities increase in nominal value? I mean I know they aren't, but it's not intuitive. As a gross simplification: One would think if I
by notch656a 4y ago
Wouldn't inflation mean equities increase in nominal value? I mean I know they aren't, but it's not intuitive.
As a gross simplification: One would think if I own 1/N pieces of a meat grinding automation machine that when prices of everything go up, all else equal, the nominal value of the machine and the system behind it would go up as well.
- akomtu 4y agoThe Fed has a huge pile of stocks it's bought over the past decade. Now it's dumping them, slowly.
- njarboe 4y agoThe Fed bought a lot of various assets (US bonds, home mortgage bonds, and even a few corporate bonds via ETFs), but never bought stocks as far as I know. Would love a reference on this if you have one.
- vba616 4y agoAs far as I know, all the ETFs were bond funds, but maybe someone said they were propping up the stock market because ETFs are traded on stock exchanges, and then someone else interpreted that to mean they are buying stocks... https://www.google.com/search?q=just+a+normal+day+at+the+nation%27s+most+important+financial+institution https://www.google.com/search?q=just+a+normal+day+at+the+nat...