I understand that there are many factors at play, and companies that have been leveraging debt may be affected by interest rates rising and they may be affected if they see sells slow because their consumers stop buying or they cannot raise prices to keep profit margins steady. Put that aside.
Say I've bought shares of a small company that produces valuable and likable products and services for which they consistently are able to raise the prices as their costs go up. They also do not need to borrow any money to keep operations going. It's just a very simple small company. 1000 shares at $100 each. They have earnings of about $100 per share. Raw materials go up, they raise prices. Their customers pay the higher prices. Business is good and steady. Labor costs go up, they raise prices, and their customers pay the higher prices, and business is good and steady. In this scenario, why should the stock valuation go down OR up? That said, when I bought the company $100 per share was a fair amount of money, but today $100 has been severely devalued. I used to be able to buy one of their widgets for $100, but now, I'd need $1000 to buy one of their widgets. Should the stock valuation be following inflation rates? I sure as hell am not selling my shares for what I paid for them years ago.
I just see a lot of negative sentiment, lot of people pushing this idea that everyone needs to be selling, yet I strongly suspect a blanket approach isn't wise. I should sell off speculative, unprofitable holdings, but for those that are doing remarkably well, I don't quite understand why people are throwing out the baby with the bathwater.
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