Inflation is also bullish for equities (stagflation is not).
If you think inflation is a risk due to rapid economic growth, equities are a great place to be. All else being equal (demand for equities, earnings, etc), as the value of cash decreases, it takes more of it to buy the same equity value that it used to before the new money was created. Stock prices have to go up just to tread water, and up a lot to reflect any real gains. Equities can even go up and lose value on a real basis.
If you think inflation is a risk due to rapid economic growth, equities are a great place to be. All else being equal (demand for equities, earnings, etc), as the value of cash decreases, it takes more of it to buy the same equity value that it used to before the new money was created. Stock prices have to go up just to tread water, and up a lot to reflect any real gains. Equities can even go up and lose value on a real basis.