This is the exact PlayBook of 1970s....
1. hhigh inflation
2. Unstable industry
3. Regional wars
4. Record Bull in Stock Market
5. High Energy Price
https://www.forbes.com/advisor/inve...he,but valuations eventually became stretched.
Bull Market of 1970-1973: The Nifty Fifty
- Length: 32 months
- S&P 500 Return: 73.5%
- Maximum Drawdown: -13.9%
The bull market that began in May 1970 was associated with the rise of a group of
high-growth companies called the Nifty Fifty. The Nifty Fifty included a number of stocks that are now considered blue chip companies, such as McDonald’s, IBM (IBM) and Walt Disney (DIS).
https://livinghistoryfarm.org/farmi...oney/farm-boom-of-the-1970s/food-price-hikes/
As farmers planted fence row to fence row and as export markets continued to expand, U.S. consumers eventually faced price hikes for food, and there was a backlash against agriculture.
At the same time as the 1972 Russian wheat deal, the U.S. economy was in a period of spiraling inflation – workers were demanding higher wages, so companies passed the increases on to consumers (who are also workers), who then demanded higher wages to keep up. In the summer of 1971 – in the middle of a presidential election – President Nixon imposed a wage and price freeze to woo potential voters.
In 1972, after he won the election, Nixon relaxed the freeze and food prices shot up. The Russian grain sale caused at least part of those increases.