Inflation Trends and The Stock Market

The stock market is often seen as a leading indicator of economic activity, with movements in share prices reflecting changes in underlying conditions. For this reason, analysts closely watch stock markets for clues about future inflation trends. While inflation has been one of the most feared economic events, periods of high inflation have often been followed by bear market rallies. What does this phenomenon mean, and how does it impact investors?

In this episode, Greg and Doug talk about inflation trends, the bright side of all of the issues facing the U.S. and the international community, and the importance of time and quality assets in investing.

Key Takeaways

• [00:21] - Recent trends in commodity prices.
• [01:50] - Inflation trends, CPI, and the price-earnings ratio.
• [06:12] - How U.S. stocks outperform international stocks.
• [08:39] - The bright side to all issues facing the U.S. and the international community.
• [13:49] - The importance of time in investing.
• [15:15] - How real estate investing is similar to stock investing.

Quotes

[03:55] - "Inflation has peaked and is coming down. Anything can happen in markets, but from a fair valuation perspective, we're at the average level currently." - Doug Stokes

[10:00] - "If we look at every single bear market rally since 1929 and look at the best performance during that bear market before it declined even further, 2022 would be the absolute best." - Doug Stokes

[21:04] - "Having these emotional swings based on the political news of the day and general market sentiment is one of the worst things you can do for your portfolio decision-making." - Doug Stokes

Links 

• Crestmont Investments
• JP Morgan
• Jurrien Timmer
• Fidelity Investments
• Nautilus Capital

Connect with our hosts

• Doug Stokes
• Greg Stokes
• Stokes Family Office

Subscribe and stay in touch

• Apple Podcasts
• Spotify
• Google Podcasts
• lagniappe.stokesfamilyoffice.com

Disclosure

The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.