In this op-ed encouraging the purchase of American equity, Warren Buffet makes a connection between stocks and inflation that I hadn't heard before.

Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.

Is Buffet claiming that the broad equity market automatically floats with inflation? I read a lot about investing, but I'd never heard that before. Presumably long-term bonds would react inversely.

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