m3 is now over 14 percent ..., page-8

"I contend the stock markets are going up because, since the value of 'money' is falling, it takes more 'dollars' to buy a share than it used to. ie. the price of 'a share' is increasing just like the price of milk is increasing ... in each case it's the 'price' not the value that has increased. It's the 'price' that the indices measure, not the value."


Its a lot more complicated than that.
The 1970's saw high inflation and low stock prices.
Inflation ultimately hurts markets.
The negative impacts are :

* Higher interest rates, which increase company borrowing cost
* Higher interest rates increases the opportunity cost of capital and makes competing investments such as fixed interest more attractive compared to stocks.
* Reduces business's willingness to invest which in turn affects the economy and stock prices.
* Higher labour costs
* Higher company asset replacement costs

The only companies which stand a chance are those which have low asset intensity, perhaps an FMCG retailer like WOW.