Wait i am sorry. I am ignorant on this subject to say the least but how does stock market growth effect inflation. We had years of exponential stock market growth without correlating inflation.
Or did you mean that both stock market and consumer spending in general together create inflation
NP (hat tip)
The two tend to operate in loose tandem.
When inflation occurs the price of many things is rising vs the dollar.
Rather than measure all those things we measure inflation by measuring a subset, (just consumer items,) but this does not mean only consumer items are getting more expensive.
Anyway, when a Cent. Bank puts helicopter money into an economy, some of it is used for consumer items, and some for stock purchases. Thus price of each rises.
NORMALLY that helicopter money dissipates, and then inflation goes away (stock prices and consumer prices wither move sideways or move down.)
THIS TIME the helicopter money has not dissipated. It has moved into money market accounts, lurking in the shadows, in a place economists usually don’t report on because usually it doesn’t get so high that it matters.(the ceteris paribus assumption.)
The end result was a garuntee no matter who had become president. Unless you believe it is the president who is creating each and every job (as Al ostensibly does at least regarding Biden). Both I and @Gaius have repeatedly rejected such notions.
Ultimately though isn’t the health of consumer much more relevant?
Unlike the Federal government the consumer can’t simply print money to fix their financial woes. We can’t have growth without healthy consumer spending.
Again i am not saying it’s because of Biden.
I don’t understand this reflexive need
Household debt v income soaring is bad.
Savings rate v income is also dropping. (That’s bad too and it is basically the same thing.
I am not sure what this guy’s red marks are supposed to indicate, but here is one illustration I recently came across on twitter. (from a reliable guy.)
Here’s something else I found that I believe is apropos to this discussion:
From the link:
We think the market will close around 4,000, the S&P 500, which is really limited upside from here.
Basically flat.
Sideways would be good but It will be more like a decade.
(Yet ANOTHER lost decade)
Historical averages suggest in the foreseeable future some combination of
It would be tragic if that happened in 12 months.
Not sure I follow? If corporate profits double how would stock prices be cut in half?
Shiller P/E is almost 30.
Based on historical norms
if corporate profits stay the way they are . . . stock prices will be cut in half.
Most likely stock prices will move sideways for a decade while profits slowly catch up.
Okay, I get it. If stock prices in 10 years from now are abou where they are to day I wouldn’t be shocked.
That would be consistent with history.
Below is an ultra long term chart of DOW
It shows us
Biden won’t finish his term.
Let’s Go Brandon!
A dream
Maybe two days ago.
Not now.
The Dems are giving Brandon the heave ho. He is done.
You said he was gonna be done before his first year is out or may be his second year. This is his third. 
. I am going to take your predictions with a grain of salt.
the presidential families selling products…
Hunter’s art work…
at least Billy beer was reasonably priced…
President Kamala???
Historical.
Biden is a liability now.
That seems very very likely.
Predictions regarding unemployment, inflation and GDP are more difficult (too many variables.)
But the stock market has spent more than half its time in a sideways-moving decade. Even post WW2 the stock market has spent nearly half its time in a sideways-moving decade.
Note also that while the stock market moves sideways that does not mean inflation is at/near zero. When the stock market spends a decade moving sideways the average IRA/401k or university endowment etc. shrinks vs inflation. READ: If you are over 50 you might retire on less than what’s in your 401k now.
