RE:RE:RE:RE:RE:RE:Lot of watchers@ auburn2 - The Fed in all likelihood won't tighten the money supply but the bond markets can and will "demand" higher rates of return on lending instruments if inflation moves higher and cuts into the margin of their returns. Tesla for example already has a forward P/E ratio of over 1400 times and even a 1% rise in interest rates would raise hell with the PV of their DCF. Would investors be willing to pay more than 1400 times earning for Tesla shares when the P/E ratio of the S&P500 in 2020 was 24.88 times earnings and its historical average is 15.88 times earnings? I wouldn't. Way to much risk for me. One production hiccup or whatever and it could be look out below.
Interesting chart on the money supply btw.