Teachers! Could you help me read this article? ♡
Hi, teachers ?.?
Below is the fourth and fifth paragraph of an article that is composed of 10 paragraphs.
In the first half of the article, it explains the general relationship between inflation and stock prices; they are in proportion in the long run whereas being inversely proportional in the short term.
So teachers, please answer my questions!
The inflation bugThe complex relationship between inflation and equity returns
(…)
Start with the evidence that stocks beat inflation over the long haul. In the most recent Credit Suisse global investment returns yearbook, a long-running survey, Elroy Dimson, Paul Marsh and Mike Staunton show that (1)global equities have returned an average 5.2% a year above inflation since 1900. You may quibble that the survey covers the sorts of stable places that (2)have had a long run of stock prices in the first place, such as Britain and America. Even so, the finding (3)fits with intuition. When you buy the equity market, you buy a cross-section of a country’s real assets.
Yet stock investors still need to be mindful of inflation. Markets tend to put a lower value on a stream of cash flows when inflation rises; and a higher price on cash flows when it falls. There are competing theories for the inverse relationship; (4)many date from the last 1970s and early 1980s. A paper written by Franco Modigliani and Richard Cohn in 1979 put it down to “money illusion”: rising inflation leads to falling stock prices because investors discount future earnings by reference to higher nominal bond yields. The correct discount factor is a real yield (ie, excluding compensation for expected inflation). Other theories said that inflation is merely a reflection of deeper forces that hart sock prices: an overheating economy; rising uncertainty; political instability.
(…) |
(1)
Is either of two a correct interpretation?
? Global equities have gained 5.2% a year on average, and that figure is higher than the average rate of inflation since 1900.
? The difference between global equity returns and inflation is 5.2% a year on average since 1900.
(2)
What does “to have a long run of stock prices” mean? “Stock markets are old enough to exist over a hundred years?”
(3)
Teacher, I checked the difference between “fit” and “fit with” on the Internet, but there was little information about it. If I put “fits” instead of “fits with”, is that wrong?
(4)
I looked “date” which is a plural noun up in a dictionary, but found nothing. What is “many date”?
Teacher, thank you so much for reading my post!
I’m looking forward to receiving your reply 
Top answer
ANNE202 (1) Is either of two a correct interpretation? 2% a year on average, and that figure is higher than the average rate of inflation since 1900. 2% a year on average since 1900.
- ANNE202 (1) Is either of two a correct interpretation?
- 2% a year on average, and that figure is higher than the average rate of inflation since 1900.
- 2% a year on average since 1900.
- It is hard to put math into words.
- Inflation makes money lose value.
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ANNE202(1) Is either of two a correct interpretation? ? Global equities have gained 5.2% a year on average, and that figure is higher than the average rate of inflation since 1900. ? The difference between global equity returns and inflation is 5.2% a year on average since 1900.
It is hard to put math into words. Inflation makes money lose value. If you con
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