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Strategies & Market Trends : Galapagos Islands

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To: Jorj X Mckie who wrote (49001)11/18/2003 12:39:59 PM
From: zonder  Read Replies (1) of 57110
 
It takes a while for higher prices for oil and food to translate into higher share price for Yahoo. There is a whole period of translation between perceived value of things for that to happen - higher costs make the company increase its prices (not included in calculation of PPI & CPI, in all likelihood) which then lead to higher revenues. Only then will the company's share price increase.

I used to run a couple of funds in developing countries at one point, and that is how it worked.

More immediately, and on a more personal level, inflation significantly decreases the feel-good factor - when prices of everything start going up and you still receive the same salary, life doesn't look as rosy as before...
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