Equities and their relationship to CPI Inflation
Bull markets tend to follow a drop in CPI, once the deflationary relationship ceases and goes back into inflationary mode.
As it takes additional "devalued currency" to acquire the consistent amount of the equity in relation to it.
In addition, with low rates, this creates opportunities to take on debt (with equity as well) such as a home, as the loan itself will be eroded away in terms of the dollars within the loans purchasing power. While the underlying asset will appreciate in comparison to the devalued/inflated dollars relative to it.
So may be time to buy that home you were considering!
As it takes additional "devalued currency" to acquire the consistent amount of the equity in relation to it.
In addition, with low rates, this creates opportunities to take on debt (with equity as well) such as a home, as the loan itself will be eroded away in terms of the dollars within the loans purchasing power. While the underlying asset will appreciate in comparison to the devalued/inflated dollars relative to it.
So may be time to buy that home you were considering!