If I bought 10 shares out of 100 available shares of a debt-free, profitable company for $10 each, and two years later inflation has doubled the cost of EVERYTHING I consume, and the company for which I own 1/10 of has also doubled the price of the goods they sell, and indeed they are still selling in this new economy, then why oh why would anyone be able to convince me to sell my shares to them for $10 or even less? This idea that inflation should be driving down the markets is weird to me.
Now, if I bought 10 shares out of 100 available shares of a start-up company that needed to borrow a bunch of money regularly, AND their product was not selling for a profit, THAT makes sense. The next time they seek out another round of funding, the rates on that next loan are going to be higher, it's increasingly risky to own a part of a company that is going under and incurring more debt.
BUT again, not talking about a losing company. Talking about a company that I own, which is able to move up pricing on high demand goods and services in lockstep with general inflationary pressure.
Why are some people dumping into this fear right now at a tremendous loss IF they are indeed holding valuable companies? … I don't really care, because I'm buying what they are selling, but I'd like to understand the rationale.
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