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Over on FB, I’ve been posting sort of liveblog type entries while listening to the Invent Like an Owner podcast and assembling the Lego world map (basically, when I finish watch/listening to an episode, I post a picture of the table where I’m doing the map, along with a paragraph or two about which episode I just listened to). For the Alex Edelman episode, I mentioned the question that arose about cat subst, and this triggered some comments from people I used to work with Back in the Day. Kind of fun!
Reading the news, I ran across this astonishing assertion in a summary of Possible Things to Worry About (article link is: https://www.bloomberg.com/opinion/articles/2021-06-29/markets-are-so-good-investors-are-asking-what-can-go-wrong may be paywalled): “To protect themselves from inflation, investors would expect to pay less.”
We would? Really? Why would I expect to pay less for stocks if there was _more_ general inflation. I mean, I can _easily_ imagine that stocks have likely gone up a lot, and inflation might cause them to _stop_ going up as much, or maybe just stop going up at all, and things just sort of have a different relationship to each other. Is that what is meant by less?
“Overall, the median return for the S&P 500 since 1960 has been 15% in periods of low inflation, against 9% in periods of high inflation. If the CPI keeps rising consistently from here (something few now expect), that would be seriously problematic for a stock market that’s already up more than 13% for the year.”
Indeed, that appears to be what is meant. “Paying less” = Not Paying As Much More As If There Was Less Inflation. *shrug*
Reading the news, I ran across this astonishing assertion in a summary of Possible Things to Worry About (article link is: https://www.bloomberg.com/opinion/articles/2021-06-29/markets-are-so-good-investors-are-asking-what-can-go-wrong may be paywalled): “To protect themselves from inflation, investors would expect to pay less.”
We would? Really? Why would I expect to pay less for stocks if there was _more_ general inflation. I mean, I can _easily_ imagine that stocks have likely gone up a lot, and inflation might cause them to _stop_ going up as much, or maybe just stop going up at all, and things just sort of have a different relationship to each other. Is that what is meant by less?
“Overall, the median return for the S&P 500 since 1960 has been 15% in periods of low inflation, against 9% in periods of high inflation. If the CPI keeps rising consistently from here (something few now expect), that would be seriously problematic for a stock market that’s already up more than 13% for the year.”
Indeed, that appears to be what is meant. “Paying less” = Not Paying As Much More As If There Was Less Inflation. *shrug*