Inflation has been high, the dollar has been devalued, and asset prices have soared. This is reasonable to me.
Further inflation should not result in a market crash…but rather higher asset prices.
Inflation is being be combatted by raising interest rates. Sure, this will stagnate economic growth, but it is very unlikely to lead to deflation (and I don't think anyone is talking about this). Even after all of the rate hikes, the currency depreciation is still present, and asset prices should still be worth more than pre-inflation asset prices.
So what exactly is the problem here? Am I missing a piece of the puzzle?
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