CHART OF THE DAY: It Took U.S. Stocks Way Longer To Respond to Inflation Than Israeli

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Last week we showed you how Israeli stocks surged as a result of hyperinflation (nominal terms) in the country.

We wondered how U.S. stocks performed during roughly the same time period, a time epitomized by stagflation and rising oil prices in the U.S.

While the S&P 500 rose, it did not have the same sort of tight relationship with the CPI the Israeli All Share did.

In fact, it took the S&P 500 over 20 years to get in line with a rising CPI.

So don’t get too excited about hyperinflation’s nominal impact on U.S. equities just yet, particularly if growth remains stagnant.

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