2 years ago, everything was half the price it is now. Why haven’t stock prices doubled?


2 years ago, a car cost $25,000, and now it is $50,000

2 years ago, a fast food burger was $5, and now it is $10

2 years ago, a gallon of milk was $2.50, and now it is $5

2 years ago, a residential lot was $150,000, and now it is $300,000

2 years ago, a realty trust fund was $100, and now it is $75

2 years ago, a profitable growing tech company was $100, and now it is $75

2 years ago, a computer was $1000, and now it is $2000

2 years ago, I had 2 years worth of retirement purchasing power, and now I have less than 1 years worth

Those numbers aren't exactly accurate, but that is the general trend with inflation, and the impact of the Fed's actions on the market. What gives? My retirement accounts are plummeting in both purchasing power, but also in account balances. I have literally 50% of the purchasing power I had just 2 years ago because inflation has eroded that purchasing power (and that is accurate), as the Fed's rate hikes have crushed the market.

If the price of goods is climbing, the goods and services that companies are selling to me, then why the hell are their stock valuations dropping? Why would I sell shares of profitable, growing, price-setting, companies for LESS than what I paid for their shares.

The way I see it, is my past earnings, the dollar, has been grossly devalued. It's stolen away my purchasing power from my wages, but it's also stolen away purchasing power on past, stored earnings. I have no choice. No matter what the Fed does, inducing a market downturn, inducing massive layoffs for a recession event. I can't sell off my shares of companies that are still growing, still profitable, still have assets, and still defining the very prices on things, higher and higher, and higher. The ONLY thing that is actually happening from my perspective, is that my entire lifetime of savings is getting stolen away.

What gives? Why are stock valuations, retirement accounts going down instead of up? Take for example that realty trust fund. ALL they own is rent-seeking apartment units. They sure as hell raised rent pricing. Why would the shares become worth less because of the Fed tampering with the value of the dollar and interest rates?


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