Here’s The Contrarian on the current asset bubble we’re in: The U.S. stock market and U.S. bond market are historically overpriced, and real estate is at the high end of the valuation scale too. Starting valuations are so poor that seven-year real return forecasts are direr than they were even in 2000 and 2008. InContinue reading “Gonna Party Like It’s 1999”
Category Archives: #inflation
Your money is worth less by the amount the Fed expected. Per ZeroHedge: The final print actually matched expectations, rising 0.4% MoM (vs +0.2% MoM in November) pushingthe YoY print for the headline CPI up to +1.4%. This is the seventh straight rise in consumer prices. But, when you get into the details, it’s lookingContinue reading “Inflation News”
Per MorganStanley, five factors will drive inflation: 1. First, private sector risk appetite has experienced limited scarring: As we have argued at length, the pandemic was an exogenous shock. Policy-makers were unfettered by moral hazard concerns and had little hesitation about underwriting household and corporate income losses to an unprecedented degree. In particular, while unemployment costContinue reading “Inflation Ahead?”
A Blue Wave of Helicopter Money
Corporate elites get their payday. As for the rest? Qu’ils mangent du gâteau. And remember what history teaches happens next: après moi le déluge https://www.zerohedge.com/markets/here-are-full-blue-wave-implications-politics-markets-and-economy
Inflation Ahead? Or Is It Already Here?
Here is the M1 – the most liquid of all measures of the USD money stock. Note the growth during the Obama years following the Great Financial Crisis. Slowed a bit under Trump. But relentlessly grew faster than the economy. Until CoVid hit when the M1 exploded. Until November 2020 when the M1 went hypersonic.Continue reading “Inflation Ahead? Or Is It Already Here?”