If our dollars are worth less in exchange for a loaf of bread, then why would our dollars be worth more in exchange for a share of a bread company?
This idea that stock valuations need to plummet due to inflation doesn't add up for me.
I bought some shares of a profitable debt free company before rapid inflation was induced via the Fed's economic stimulation actions… before they devalued our wages and lifetimes of savings. Why should I sell my shares of this stable, profitable, debt free bread company as the price of bread has gone up +100%, yet my shares continue falling in valuation? I mean I get that I need to eat, but ultimately the company is taking in more dollars now, not less.
If I'd invested in a meme stock for a company that was losing money and having to borrow just to stay afloat, AND losing customers, then inflation and a pending recession would surely drop the valuation of the shares, but none of that is true for all companies, so why are all companies down?
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