... and that is how asset price inflation is fueled - me finks....

... and that is how asset price inflation is fueled - me finks. Since cash yields next to nothing, capital tends to flow into stocks.

... Wonder if we ever get inflation again, obviously not until 2024, if the yesterdays RBA announcement is to be relied on. If it happens, the best that can be said is, that higher inflation and thus higher interest rates will put a downward pressure on multiples, i.e. money will flow back into interest bearing instruments. ...

I expected a somewhat similar effect when Labour had the 'great' idea of abolishing the franking credit refunds. That would have disadvantaged dividend paying stocks versus no-dividend paying 'growth' stocks; making the latter ones more attractive taxwise. Lovely stimulus to invest into more risky stocks, if you like. ... Only Labour can come up with that sort of budget 'fix".

If companies would have decided to retain dividends, investors would have looked at 'price to book' metrics.

... just my musings (and not fully thought out) Haha