Co-head of research at Equitymaster, Rahul Shah recently did a study between inflation and stock market returns to dive deeper into some of these concerns. #1 Tell us about why you chose to do this study between inflation and stock market returns? My study of the relation between inflation and stock market returns resulted in some interesting findings. the ones prevailing between 2011 and 2015, does not mean high stock market returns. One must also note that while an obscenely high inflation can play havoc with purchasing power, a certain threshold of inflation is required to incentivize producers and businesses.

Source: Mint July 14, 2021 13:41 UTC