Playing the Inflation Game with Moonshots

Playing the Inflation Game with Moonshots

For most high-growth tech investors, inflation is usually the last thing on their minds.

And for good reason. When tech investors are looking for the next 1,000x Amazon, the difference between 1.5% and 3.5% annual inflation seems irrelevant.

But tiny changes have a habit of upending stock markets. My heart goes out to Cathie Wood, who slapped a $3,000 price target on Tesla just as the carmaker's share price was plummeting. (It's down 32% from its January highs). When discount rates are so low, minor changes have an outsized effect on the value of future cash flows.