Do you think the DOW below 12,000 is reflecting the damages of inflation?

Question

How is a 16% real inflation rate really affecting your portfolio?

Answer 1

Inflation should make the market go up if consumption stays constant.  Companies revenues will rise as prices go up.  So I think you mean is the drop reflective of the greater recession.  I don't think it is at all, the market was overpriced to begin with because there's always more money looking for investments than there is safe places to put it.

Answer 2

No it is the 65 trillion worthless dollars in CDO's the banks have .