Wednesday, October 21, 2009

Inflation Will Kill Stocks

Voltron says: One way of valuing stocks is to add up the discounted expected dividends. The key word is here is "discounted", i.e., adjusting for time, interest rates and inflation. If inflation goes up, future dividends are worth less in today's dollars.

http://www.businessinsider.com/dont-kid-yourself-inflation-will-kill-stocks-2009-10

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