When the Federal Reserve prints more money, it increases the money supply, leading to inflation and reducing the dollar's purchasing power. Consequently, asset prices, including stocks, rise nominally. THUS, WHEN STOCKS GO UP, IT CAN ACTUALLY INDICATE THE MARKET IS CRASHING BECAUSE IT TAKES MORE DOLLARS TO BUY THE SAME ASSET. This asset inflation might not reflect real economic growth, risking a market correction or crash if the economy doesn’t grow alongside inflated prices.

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