/biz/ - Business & Finance

>>49704403
Increased costs eat corporations profit margin and their valuations. The periods with some of the highest inflation in the 70’s had the lowest market returns because of this.
Unfortunately you have received bad information about inflation from retarded crypto bros. Borrowing money is bullish, generating growth with that money is bullish, missing growth with that money and generating inflation instead is bearish.

>>49523180
You’re actually doing your homework, I’m impressed. Yes markets did awful during high periods of inflation in the 70’s, pic related they hit valuation levels on par with the Great Depression. Imagine being the boomers and getting to buy the bottom of that. Other periods of inflation markets have done badly too. Markets do well during the leverage phase of the cycle, borrowing money is extremely bullish, printing money to pay back that debt is extremely bearish.

>>49481435
Everyone’s just waiting for Friday to start the next leg down

>>49334091
Those extra dollars are passed along to increased costs, hence why the market of the late 70’s had valuations on par with the bottom of the Great Depression. It takes more money, but that money takes more costs, which means little growth, below inflation even