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AnotherGoodNameyesterday at 5:48 PM1 replyview on HN

For rate rises that are enacted to slow inflation (which slows stock market growth as you said) i think you have the cause and effect reversed.

The best way to see how inflation and stocks are linked is to look at economies where inflation is not intentionally slowed by rate rises. The stocks go up more or less with inflation (and some small % of gains they may have on top as you say). When you have rate rises that slow inflation you do indeed slow stock growth. But this is also inline with the link between inflation and stock price.


Replies

caminanteyesterday at 7:56 PM

I thought you were joking with you earlier comments.

> The stock market is mostly just an inverse of currency health

> The stock market [] tends to be inline or slightly above inflation on average

Now, you're saying the following, when there's no strong positive link.

> The stocks go up more or less with inflation