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Updated Sept. 24, 2021 7:16 p.m. ET / Original Sept. 24, 2021 11:19 americium ET
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Common stocks are expected to beryllium hedges against inflation, according to Finance 101, due to the fact that corporations typically walk on higher costs to customers by expanding selling prices. But if they can’t, companies indispensable sorb the higher expenses, hurting nett margins.
Inflation’s interaction connected net was Topic A present a week ago, arsenic shaper prices raced up of user prices, putting margins successful the tightest vise since the stagflationary 1970s.