Relationship between inflation expectation and market.
文章来源: armorr2008-02-26 07:35:24
On one hand, high inflation expectation reduces the probability of future rate cuts, which is negative for the market. On the other hand, high inflation expectation will reduce the appetite for treasury bonds, which moves money from bond market to stock market and is postive for the market.

Market will find a balance between the two forces.