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A comment on Investors double down on stocks, pushing margin debt to record. Parent comment

Re:Investors double down on stocks, pushing margin debt to r... by selectodude on Sunday December 27, 2020 @12:01PM (#25552349)
Price and value have almost no correlation though. As future cashflows dwindle in number, the cost to buy a chunk of those future cashflows go up, and the people who have the most free money to buy that stuff are the ones getting free cash from the Fed.

Not to make the connection, I don't think we're at any risk of hyper inflation, but the Caracas stock exchange went up 200,000 percent in 2018. Had nothing to do with value creation.

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Re:Investors double down on stocks, pushing margin debt to r... by ISL on Sunday December 27, 2020 @12:29PM (#25552573)
Agreed in general on the printing of free money, but there is a phase-lag.

The big difference in Caracas is that the price of a cheeseburger may have risen by the same amount when priced in the same currency. That isn't nearly as much the case in the US of 2020.

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