The Compound and Friends cover image

Jeremy Grantham, Bubble Historian

The Compound and Friends

NOTE

Market Indicators and Investor Comfort

The market is a coincident indicator of investor comfort. It favors low inflation and stable inflation rates around 2%, while disliking high inflation and volatile inflation rates. Additionally, the market values high profit margins and stability of growth over high growth rates. It prefers consistent growth rather than erratic fluctuations for sustained comfort.

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