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I wont disagree with anything you've said in your last post, because you're correct that inflation can affect some assets while the value of other assets deflate. UK Property is a classic example of an asset that increases in value while CPI is low, with mortgage interest rates held down in that environment. For many years the UK has used CPI to measure inflation, which ironically doesn't include house prices, so house prices have sky rocketed while mortgage interest rates have remained low and landlords received tax breaks pumping up prices at the lower end of the market. Basically CPI hasn't represented true inflation, keeping interest rates lower than it should have been and feeding back into house price increases. CPI could have been, and maybe was, invented to inflate property prices while inflation is low in other assets; House price inflation has encouraged a borrow and spend now culture for many, with a growing number missing out. Around 2030 CPIH will replace CPI, so you can probably expect a much cooler UK property market, since BOE interest rates will increase in line with our most expensive assets, our houses. I doubt property prices will drop much post 2030, they'll just stabilise and see far less growth in value. Clearly the powers that be wanted to inflate UK property prices, otherwise they would have included house prices in the inflation measurement and raised interest rates to compensate. Maybe UK stocks are low because much of the retail investment has fed into property instead, who knows?
I believe the US and UK stock markets should be viewed differently, since UK focused stocks haven't seen stock price inflation even close to the US stocks. Clarifying, if I was a US investor in US stocks then I'd be super cautious about buying and may even sell out of the market completely; Since I live in the UK and my dividend paying stocks are at rock bottom valuations imo, I don't see the point in sitting in cash so I'll just top up whenever dividends come in.
It's up to you what you do John, you could be right short term, we may be both be right long term,ime will tell. I'm happier to top up when and where I see value and not worry if the price drops after I invest, I'll just add more as funds become available.

"For you to state that Investors decisions are heavily influenced by inflation is total and utter garbage. "Inflation is going to be up 5% in coming 12 months so I'd better get into stocks""

Who are you quoting there John? Because I never said that.

John, the general point I was making is that cash loses value in an inflationary environment, whereas real assets hedge against inflation because they become more expensive, as inflation decreases the value of money, since inflation is measured against an increase in the price of goods and services. I'm not an economist, but this is basic stuff; Equities, Gold, property, etc all increase in price due to inflation, whereas cash in bank accounts buy less the longer inflation runs high.

"1. Reallocate Money Into Stocks
If inflation returns, it's generally a punch in the jaw for the bond market, but it could be a shot in the arm for the stock market. Consider reallocating 10% of your portfolio from bonds to equities in order to take advantage of this possible trend."

https://www.investopedia.com/articles/investing/060916/top-5-ways-hedge-against-inflation.asp

"Sell stocks and you are paid in currency- cash being the minute form of currency in our electronic age.Inflation might be 10% over coming 12 months but the market might be down 20% in the same period.Investors will be concentrating on where the market is likely to be in 12 months rather than on the rate of inflation."

I don't disagree with what you've said there, but generally equities are a hedge against inflation, except under certain circumstances. The reason I posted the 1 and 5 year charts, highlighting the difference between the US stocks and FTSE stocks, was to demonstrate the increase in US stock valuations over UK stocks The index chart highlights it even more:

https://www.google.com/finance/quote/.IXIC:INDEXNASDAQ?comparison=INDEXDJX%3A.DJI%2CINDEXSP%3A.INX%2CINDEXFTSE%3AUKX&window=MAX

The US markets have outperformed the FTSE massively, with P/E valuations averaging around 20, and some US stocks stratosphericaly higher. Some are saying that US stocks are in a superbubble, which I agree with, and are set to fall dramatically.

https://www.youtube.com/watch?v=PYYceLVXbsI

I don't peceive the same overvaluation in my FTSE stocks, in fact I see them as dirt cheap. Where I do agree, is I believe the US markets are overdue a massive correction, but I see the FTSE as undervalued and see limited downside from here. My personal belief is that the current environment is ripe for a rotation out of growth stocks into value/dividend stocks, but I haven't got a crystal ball so it's just my opinion.

In one of the early posts in this thread, I said:

"If you look at our investments, which I view as already priced at severe recessionary valuations, there isn't much to be knocked off their prices from here imo, so there's little to lose from reducing our average cost per share now."

I'm still of that opinion.

"You don't strike me as being an astute investor. I would imagine ( am very confident) that the majority (if not all )of funds are/have lightened their equity holdings to increase their liquidity and capitalise on any significant drop in market prices. Why buy at 2 when you can buy at 1 down the line.As you say markets are forward looking and sentiment is leaning towards a recession. To protect/hedge your position you increase your liquidity through raising cash and reducing equity . You don't have to be a market guru to realise this, just common sense.this logic applies since the creation of markets."

Depends on your defifinition of "astute", if you're suggesting I haven't got a crystal ball advising me on the movement of markets due to unforeseen macro events, then you're correct. As far as liquidity, we have savings but we're choosing not to use them, since we don't need to and even though I don't like holding cash everyone needs some savings. If you look at our investments, which I view as already priced at severe recessionary valuations, there isn't much to be knocked off their prices from here imo, so there's little to lose from reducing our average cost per share now.
Lloyds is currently just above 43p, lets say we invest the full £10,000 into Lloyds shares at around 43p a share, it will add over 23,000 shares to our current holding taking our total to over 400,000 shares. Lloyds have recently increased their interim dividend from 0.67p to 0.8p, which is an increase of 19% and assuming the Final is increased by the same percentage, it will increase to 1.58p from last years 1.33p. On the extra 23000 Lloyds shares alone, the final dividend will return £363, or a total of over £6,320 on the 400,000 plus shares we'll then hold; Forward looking, our Lloyds shares will return over £9,582 in Dividends in the next 12 months.
There's no guarantee that any of my stocks will drop significantly from here, like there's no guarantee Ryanair wont drop back to the €8 range, but that's the chance you take, otherwise you just sit on your hands and constantly await a lower price that may never come. Personally I think a recession is already more than priced into stocks, so I'll ignore the rhetoric around funds moving into cash to build war chest's and add when I see fit, if cash is sitting on the sidelines it could just as easily flow back into the market next month rather than next year.
Should we choose to reinvest all our dividends going forward, that means we can increase our holdings by £21,000 in the next 12 months, and probably more in subsequent years, if that isn't growth I don't know what is and at some point our stocks are likely to revisit historic fair valuations. I'm more than happy not being an "astute" investor.

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