In an environment of high inflation, stocks do not perform well because while revenues and profits go up nominally, costs also rise, and bond yields spike, making it harder to discount future cash flows, resulting in single-digit price-earnings ratios instead of current 25-30 multiples.
causalpending
Speaker
Unidentified Speaker — Asset Bubble Crescendo Until 2027 Collapse When U.S. Treasu… [xABqbKt5-I4]Evidence Quote
“in the 1970s the stocks do not like large amounts of inflation. Yes, profits go up, revenues go up, but so do costs and it causes bond yields to go up, which means that it's hard to discount the future.”
Source
Asset Bubble Crescendo Until 2027 Collapse When U.S. Treasury Market Implodes, Argues Mel Mattison— Forward GuidanceCreated: 8/12/2026, 6:43:41 PM
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