When you see Oil companies and their connected markets on the rise
In terms of equity price
Is that a reflection of investor appetite for their future cash flows?
Or is that more an indication of...
It’s a bit of a feedback loop. Inflationary policy devalues the currency, pushing nominal commodity prices higher. But the real 'appetite' comes from the fact that these companies have shifted from growth-at-all-costs to being massive cash-flow machines. They aren't just inflation hedges; they're yield plays now.
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