- In general, higher and more volatile inflation has negative effects on all financial assets, from stocks to corporate bonds to treasury bonds, and neutral to positive effects on gold, collectibles and real assets.
- The effects of inflation on firm value boil down to the impact inflation has on expected cash flows/growth and risk.
- In 2022, the collective market capitalization of all US firms has dropped by 19.75%, with the bulk of the drop occurring after April 1, 2022.
For further details see:
A Follow Up On Inflation: The Disparate Effects On Company Values