How Does Inflation Affect The Global Stock Market?

[Good-Person]

We know that the global stock market is dependent upon the world economy. This is also one of the main reasons why I strongly believe that there is a really huge relationship between stock market and global inflation. So, do you also think that there is some sort of relationship between the two?

 

[Planbizzle]

Inflationary pressures can be costly to consumers, stocks, and the economy as a whole. Increasing costs and unpredictable revenue growth can put a strain on company profit margins causing stock prices to fall.

 

[Nomad]

When there is inflation, money loses its value. IN order to control the value of money, governments increase interest rates, when interest rates are increased, businesses will make fewer profits, thus, the value of the stock market will go down.