5 Ways Inflation Can Hurt Stocks

After this linked article was published, several people asked how inflation could hurt stocks. After all, the argument goes, inflation is nothing more than too much money chasing too few goods and services. Why wouldn't inflation be good for the stock market as all that extra money has to go somewhere -- including into the stocks of companies bringing in more revenue due to inflated prices?

In the short term, that might be true, but as people and businesses are forced to adjust to the higher and rising prices that inflation brings, the longer term reality can get downright ugly. Read on to learn about five ways that inflation can hurt stocks.

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Source Fool.com