Broker Check
Understanding Inflation & the Media

Understanding Inflation & the Media

October 26, 2021
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The stock market saw positive gains again last week with strong corporate earnings as a major catalyst. While on the flip side, (perceived) negative stories around the fear of higher inflation have been appearing in the news frequently. The biggest concern is that high inflation will make the Federal Reserve hike interest rates and slow down economic growth, which may lead to a decline in the stock market. This happened in a significant way in the early 80’s.

Here’s how I analyze this type of information. Any news story, positive or negative, that is being widely discussed is already factored into the stock market and will only drive stock prices up or down minimally. The more it is discussed the less impact it has on the market. Breaking news is what moves the market, not old news.

Photograph by Ibrahim Boran

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