Stock prices may be rising, but so is the threat of inflation, hedge fund manager Kyle Bass told CNBC Friday.
As the Dow Jones Industrial Average has reached 14,000 for the first time since 2007, Bass said the inflationary environment created by the Federal Reserve and other central banks could eat up much of those gains.
"You lose sight of what is important if you're focused on nominal prices in equities," said Bass, founder of Dallas-based Hayman Capital Management.
"One of the best performing equity markets in the last decade has been Zimbabwe," he added. "But now your entire equity portfolio only buys you three eggs."