The David Lin Report · Tuesday, June 30, 2026
Sam Burns explains that the stock market has shown resilience to inflation and rising yields because the Federal Reserve has not aggressively raised rates. Unlike historical patterns where inflation prompts Fed tightening, the Fed's current accommodative stance has allowed corporate earnings to benefit from pricing power.
“Are you a little surprised that rising yields and higher inflation and higher inflation expectations as well as higher geopolitical tensions all throughout this year, uh, these things have not collectively caused the stock market to crash?”
“Uh a little bit in the sense that I think there are a lot of other times historically when if you'd had these same inflation kind of conditions, um you would have seen much more of a negative response from the market.”
“Now, part of that is because, um normally the reason inflation is a problem for stocks is that it causes the Fed to raise rates.”
“Uh, but so far the Fed has not done that and has not really indicated it's going to go do that.”