Fundamentally, stocks are a good hedge against inflation if corporate profitability keeps up with inflation. Using … monthly stock-market data covering over 151 years from 1871 to 2022, this paper analyzes the relationship between inflation … between corporate profitability and inflation varies across sample periods, time horizons, and ranges of inflation. Corporate …

This paper investigates how the stock market reacts to the Federal Reserve's ability to tame inflation through rate … hikes. Since investors do not directly observe the speed at which rate hikes reduce inflation, they need to learn about it … by observing inflation prints. When investors realize that the Federal Reserve loses control of inflation, the market …