I’m still curious about the United States from 1968 to 1982. It was a crazy period that saw inflation peak of about 12%, the federal funds rate reaching almost 20%, and the stock market performing poorly. One thing I want to understand more deeply is the reasons underlying the stock market’s performance. Increasing interest rates push down company multiples and valuations, so that makes sense to me. But I think there’s more to know.

I was listening to a podcast when the guest mentioned that Warren Buffett wrote an article in Fortune magazine in May 1977 that explained how inflation robs equity investors. They spoke very highly of the article and explained part of it, which piqued my interest. So, I’m going to find that article and give it a read. Hopefully, I’ll grasp what Buffett was saying and can share my understanding.

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