It's a tale as old as time or at least the stock market: When consumer prices are on the rapid rise, investors start scrambling to snatch up the best inflation-proof investments. It's a sound strategy, with the May CPI report showing consumer prices rising at their fastest pace in three years. is overblown.
The theory goes that high inflation causes economic uncertainty and stock volatility, which typically don't bode well for equities. But the data suggests otherwise.
