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Old 07-13-2021, 09:39 PM
 
Location: Illinois USA
1,249 posts, read 808,283 times
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Do high inflation and depressed stocks and bonds prices coexist ? what market forces will need to be present for this to happen

thanks
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Old 07-13-2021, 09:53 PM
 
Location: Flyover part of Virginia
4,231 posts, read 2,417,517 times
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The stock market will "crash-up"', similar to what happened in Venezuela.
Even though Apple Stock may go to very high levels in nominal terms, you'll be able to buy a share of the stock for the price of a few real apples.
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Old 07-13-2021, 10:45 PM
 
Location: Florida
2,263 posts, read 2,158,354 times
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It’s possible. High inflation and low bond prices go hand in hand. Stocks are really on a case by case basis. The whole market can be hurt though if bond prices fall too fast. The market doesn’t like abrupt changes so if bonds crash stocks will crash. Generally though, higher inflation doesn’t lead to a market sell off.
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Old 07-14-2021, 03:37 AM
 
105,671 posts, read 107,628,943 times
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High inflation is bad for everything but gold and commodities. Moderate inflation is good for real estate , cash , commodities , equities
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Old 07-14-2021, 10:53 AM
 
322 posts, read 157,415 times
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Quote:
Originally Posted by mathjak107 View Post
High inflation is bad for everything but gold and commodities. Moderate inflation is good for real estate , cash , commodities , equities

What are we in right now then? RE has been surging for a variety of reasons, but cash has had negligible returns.
Many on this blog have mentioned that rates will be kept at zero for a long time, which explains why people are parking money in RE and stocks.
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Old 07-14-2021, 11:54 AM
 
26,145 posts, read 21,357,522 times
Reputation: 22706
Quote:
Originally Posted by Taggerung View Post
The stock market will "crash-up"', similar to what happened in Venezuela.
Even though Apple Stock may go to very high levels in nominal terms, you'll be able to buy a share of the stock for the price of a few real apples.
2 cents aren’t always valued the same, it depends on the currency value and Taggerung’s historical value isn’t consistent or appreciating
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Old 07-14-2021, 05:48 PM
 
105,671 posts, read 107,628,943 times
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Quote:
Originally Posted by 2Navigate View Post
What are we in right now then? RE has been surging for a variety of reasons, but cash has had negligible returns.
Many on this blog have mentioned that rates will be kept at zero for a long time, which explains why people are parking money in RE and stocks.
We are still in the low inflation range ..just look at mortgage rates.

Bonds are doing surprisingly well gain wise …all my bond funds are up a lot
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Old 07-15-2021, 01:19 PM
 
9,332 posts, read 6,866,407 times
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Stocks can overcome inflation but they can't overcome stagflation and perhaps tighter regulations + higher taxes.
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Old 07-15-2021, 01:21 PM
 
105,671 posts, read 107,628,943 times
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Quote:
Originally Posted by SWFL_Native View Post
Stocks can overcome inflation but they can't overcome stagflation and perhaps tighter regulations + higher taxes.
stagflation is not good for anything . but stagflation is a temporary stop over that ends in either recession or high inflation .

it is not a major economic outcome like

recession

depression

prosperity

high inflation
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Old 07-15-2021, 02:44 PM
 
Location: TN/NC
34,800 posts, read 30,852,651 times
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A large part of the reason the market has performed so well are that interest rates are so low and there are few other places worth putting the money. If the flow of easy money is reduced, the market could very well correct.
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