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Notices
KW
Kolbe Wolfe (not verified)
10th September 2020 | 3:37pm

Was any consideration paid to inflation rates or expected inflation? I see the model is a more mathematical exercise and uses Fed Funds Rate, but I would generally believe an environment with high inflation would place higher value on those firms generating cash flows *today* (value) as opposed to tomorrow (growth). This would act contradictory to the analysis above, as low Fed Funds Rates are meant to stir up inflation, whereas higher rates would be to lessen inflation.