The remarkable deflationary and inflationary crosscurrents swirling through the economy are grossly underappreciated and misunderstood. Need proof? Watch CNBC or read Wall Street research and consider the likelihood of the smooth path back to “normal” they tout.
It is comforting to think about “normal” and what that may entail for our lives and portfolios. However, given the global economic tsunami and extraordinary monetary and fiscal stimulus, we would be remiss if we did not raise awareness that economic and market recovery may be far different from “normal.”
One of our deepest concerns is a highly inflationary outcome, an experience not seen in fifty years, and one for which we are least prepared. Markets always have a strange way of finding investors weakest points.
Disequilibrium Defined
“Inflation defined is, in fact, a disequilibrium between the amount of currency entering an economic system relative to the productive output of that same system.” – From…
