Consumer Prices in U.S. Increase by Most Since 2009
Can someone ELI5 why inflation causes the markets to go down rather than up? Wouldn’t cash lose more ground during inflationary periods than equities? The equity in the underlying companies should be more resistant to inflation since the companies can and will raise prices to account for the inflation. And future earnings will also increase due to inflation lowering their P/E ratios. All this seems to point to increasing stock market exposure.If there’s a market sell off due to inflation, where are those dollars going?