I found this article: Buffett: How inflation swindles the equity investor from 1977.
One thing that this article is missing is This Chart Showing the bond yields over the last century. Remember this article was written in 1977 when bonds would get you 7 or 8% yield! This really made stocks less interesting. Contrast that to before, when the interest rates were quite low (2-4%) and everyone piled on into stocks (we don't need dividends! Just reinvest with those beautiful 12% corporate returns).
Compare that cycle to now where interest rates are historically low and stocks are very attractive. However, the stock market seems to be wary of inflation and subsequent rising interest rates
Submitted February 08, 2018 at 06:54AM by nirvanna94 http://ift.tt/2EoASzp
