24 ms·
High asset prices will make rent go up, but why would it affect anything else like food, energy or durable goods?
by newacc9 4y ago
High asset prices will make rent go up, but why would it affect anything else like food, energy or durable goods?
- IdEntities 4y agoAs just one example, a tech employee whose unvested RSUs are sitting at the 2021 highs might be more willing to splash out on all kinds of things -- vacations, restaurants, a nicer fridge, primary or investment residential properties, etc -- than they would if the share price was a lot lower.
- newacc9 4y agoMiddle America's 401k gets hammered (pushing retirement off x-years) and small set of tech workers can't buy as much? Seems more harmful than good. fwiw, I don't have 401k/and I own a tiny amount of stock.
- raincom 4y agoAs rents go up, these rents eat up most of the wages, thereby increasing wages. Increasing wages cause inflation, and it is called "cost-push inflation", as both cost of goods, cost of services include wages.