On the other hand,
a higher inflationary environment with a steepening yield curve will see stock market fluctuations become bigger and more frequent.
So I'm not too worried right now about
a high inflationary environment.
Not exact matches
There is a debate between those who believe that the OIL supply disruption is
inflationary as energy prices create a rising price
environment and those who believe that
high energy prices are a tremendous drag on economic growth.
Basically, this view suggests that in an
inflationary environment in which a stock is trading at its intrinsic value and 100 % of earnings will be used to repurchase shares, there is no multiple too
high.
Coupled with the policies is an
inflationary environment where the prices of basic goods are going
higher: namely gasoline, food, etc..
Students are all too familiar with the uncertainty of the job market, the rising cost of student loans, and the burden of
high taxation in an
inflationary economic
environment.
While ideal, is such an
environment possible considering rising equity prices would be stimulative, leading to additional
inflationary pressure and
higher interest rates?
To be specific, a
higher interest rate
environment may be
inflationary in the short term, but in the long term, rates are raised to counter inflation.