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Why Stock Market Falls when Inflation is High? - Stock Market vs FDs Part 2

Part 2 of the Inflation vs Stock Market Reel is here. We analyse why the Stock Market is falling now even though people should be investing more to beat inflation! Part 3 is dropping soon! #nse #stockmarketindia #sharemarketindia #inflation #investingtips #marketfeed #shariquesamsudheen... ( read more ) LEARN ABOUT: Investing During Inflation REVEALED: Best Investment During Inflation HOW TO INVEST IN GOLD: Gold IRA Investing HOW TO INVEST IN SILVER: Silver IRA Investing Inflation is one of the key indicators of an economy's health. High inflation leads to erosion in the purchasing power of money, which directly affects investors' returns on their investments. One asset class that is affected significantly by high inflation is the stock market. The stock market falls when inflation is high because high inflation rates lead to higher interest rates, which reduces the demand for stocks. Increased interest rates lead to a decrease in demand for