The stock Market has always been the place to go when trying to beat inflation. Mathematically, if the dollar gets cut in half, the price of a share of IBM doubles and so does the price of bread. So big money keeps buying into the market when big money thinks there is more inflation coming. Of course when you have to sell your IBM to buy the bread it all comes unglued.
Typically inflation moves stock prices up, Excessive, rapid and long term inflation can ruin the economy. The big money will leave the stock market causing a crash.
The only direct reason a stock price goes up or down is if there are more buyers or sellers of the stock.
(Typically inflation moves stock prices up, Excessive, rapid and long term inflation can ruin the economy. The big money will leave the stock market causing a crash.)
Pretty much
Those trillions in new government-printed dollars have to go somewhere.