Eddy Elfenbein

How Does Inflation Impact Stocks?

I used the CPI from the government. I know there are many criticisms of this index, but it's the only one I have.

I apologize for any confusion about the chart but there's no easy way to graph it. The blue line shows the cumulative gain of the S&P 500 going by the rate of inflation (low to high being left to right).

In the deflationary period at the beginning, the market drops. Then between -5% and +5%, it rises very dramatically, Then it levels off and falls dramatically.