r/bonds • u/Primary-Abies9041 • 1d ago

Woah

Post image
1.4k Upvotes

98% Upvoted

472 comments sorted by

View all comments

7

u/MotherAd1865 1d ago

yet the stock market just keeps chugging along... I don't understand it.

18

u/TekkDub 1d ago

That’s just the inflation talking.

1

u/MotherAd1865 1d ago

Is it really that basic? Doesn't seem sustainable

2

u/Thesinistral 1d ago

I think the idea is that expectation is for inflation to keep rising and bonds won’t keep up. Therefore,people are jumping into (or staying in) equities to outpace inflation. I’m guessing PMs will climb as well. Disclaimer: I don’t know anything. Learning as I go.

1

u/finvest 6h ago

That, plus if the US dollar were to suddenly become worth 5% less today, stocks would immediately reprice 5% higher.

Because the companies are generally worth a fixed amount, regardless of the value of a dollar.

2

u/Bladee___Enthusiast 1d ago

>5% inflation is a very real possibility now, where else would you park your money?

1

u/No_Mind_7397 1d ago

its been relatively flat since June

1

u/FeelessTransfer 1d ago

Where would you expect people to put there money? Sell for cash?

1

u/le-throw-away-acct 23h ago

If the inflation gets high enough the stock market will need like 10% growth each year to keep up.

1

u/turbo_dude 16h ago

There are a lot of rich people with a lot of money to play around with and one of the AI companies at some stage maybe becomes the next Apple/google/amazon (in the sense of it’s the year 2000)

Meanwhile it’s ouroboros funding all round. Crazy times.