Rising Stock Markets = Signs of Inflation?

Discussion in 'Wall St. News' started by bearice, Mar 28, 2011.

Are rising stock markets signs of inflation?

  1. Yes

    6 vote(s)
    85.7%
  2. No

    1 vote(s)
    14.3%
  1. To fight inflation people must be investing into stock markets with the hopes of earning 100% profit in a year.
     
  2. 100% in a year is nowhere nearly enough.
     
  3. 100% a year will be 3200% after 5 years compounded and 25000% after 8 years compounded.
     
  4. If the stock market goes up that much, inflation/currency destruction will destroy buying power.

    In Turkey, 1982-2005, the stock market went up over 2,000,000%... about 66%/yr compounded. For those "lucky" enough to have been fully invested for the entire ride (and not accounting for taxes)... they STILL LOST 98% OF THEIR BUYING POWER IN THE DEVALUATION.

    Just before the devaluation in 2005, a cup of cafe coffee cost 3,000,000 Turkish Lira. After the devaluation, a cup of coffee cost 3 New Lira... the devaluation was 1,000,000:1, lopping off 6 zeros.

    (Recalled from memory... look it up if you find this astonishing.)
     
  5. I think maybe investment in stocks, real estate, gold results in high inflation. Please discuss.
     
  6. U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday.

    Still, inflation is "going to be serious," Wal-Mart U.S. CEO Bill Simon said during a meeting with USA TODAY's editorial board. "We're seeing cost increases starting to come through at a pretty rapid rate."

    The world's largest retailer is working with suppliers to minimize the effect of cost increases and believes its low-cost business model will position it better than its competitors.

    http://www.usatoday.com/money/industries/retail/2011-03-30-wal-mart-ceo-expects-inflation_N.htm