06-14-2021, 02:51 PM
(06-14-2021, 02:40 PM)fenders53 Wrote:(06-14-2021, 01:47 PM)crimsonghost747 Wrote:I am very curious when they begin to acknowledge it's going to be considerably more than the 2% target for too long. That sounds laughable at the moment. Industrial commodities won't stay up 2 to 4X like many currently are, but I just don't see the path back to 2% with loose rates and more stimulus. Nothing that is making me panic, but it's hard to ignore for anything I am not planning on holding for a lot of years. It's going to be an interesting ride before too long if we see a few more reports like the last one as we re-open. Likely a blip on the long-term charts in a few years.(06-14-2021, 11:54 AM)fenders53 Wrote: Getting my inflation trade on.
We'll see if the FED Chief can keep a straight face again while he pretends there is no inflation.
Haven't you heard, this inflation is transitory!
My view:
For the next few months saying it's "transitory" will be enough.
Then for the next several months up to a year or two, it'll be ok saying "it's ok for it to be above the 2% target since we were below that for so long".
Then they will have to figure out another narrative.
Inflation is a massive threat right now but it doesn't show up on the charts? Personally I think it's because there are very few simple methods to shield against inflation. That and the stimulus doesn't look to be ending anytime soon... as long as the sp500 keeps climbing faster than inflation, no matter what percentage we are talking about, then money will keep pouring in.