"Watch inflation's rate of change, not its level Drawing on 1970s stock market data, the speaker explains that stocks don't simply move with inflation levels — they respond to the direction of change. "Even when inflation was high, the bottom for stocks happened when year-over-year CPI peaked. So even if it peaked at 10, when it started to decline, stocks went higher." He distills this into a principle: "stocks are about not good or bad — they're about better or worse. And so the rate of change matters a lot." Investors waiting for inflation to disappear before buying back in will likely miss the actual turning point. Source: Anonymous Guest Speaker, The Pomp Podcast, Market Macro & Bitcoin Discussion"