Inflation Eroding 'Real' Stock Market Gains; Eventual Recession May Require Cutbacks
• U.S. dollar inflation is undermining the stock market's "real" prices as the dollar loses value • Adjusting stock valuations for inflation shows the market is 16% below reported levels • Premature Fed easing could strengthen inflation's grip, like in the 1970s • High deficit spending likely to create more fiat money and uncontrollable inflation • Curb enthusiasm about stock highs; eventual recession will make cutting back the norm