(Bloomberg) — On the most optimistic corners of Wall Street, promising inflation data over the past week or so suggest the Federal Reserve may accomplish a soft landing after all. Yet no such belief prevails among the big money managers, who are betting that an economic downturn riddled with still-hot price pressures will define trading […]
Read MoreThe current high inflation environment is often compared to the 1970s. But perhaps a more apt comparison would be to the 1870s. According to Bank of America, government bonds are on track for their worst year since 1865, the year the U.S. Civil War ended. Meanwhile, the stock market, when adjusted for inflation, is on […]
Read More(Bloomberg) — For equity markets, rising inflation was already a big concern. Russia’s attack on Ukraine means those worries just got a whole lot bigger. Vladimir Putin’s move to invade his neighbor led to a surge in the price of everything from oil and food to natural gas and aluminum, spikes that could choke economic […]
Read More(Bloomberg) — Investors may soon have an ETF to weather one of the worst possible outcomes for the U.S. economy: surging inflation coupled with stagnant economic growth. The Merk Stagflation ETF would be passively managed and track an index of so-called “stagflation-sensitive” asset classes, according to a Securities and Exchange Commission filing Wednesday. If approved […]
Read MoreForget a ‘taper tantrum’ — ‘inflation indignation’ is here After Thursday’s bad news that consumer prices in October ran hotter — at over 6%, the hottest they’ve been since the first Bush administration, to be exact — than Wall Street expected, most of the emphasis has been on the reaction in stock markets, where frothy […]
Read More(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. China’s inflation risks are building while new Covid-19 outbreaks are dimming the outlook for economic growth, throwing the spotlight back on policy makers as the Communist Party’s top leaders gather for a crucial political meeting this week. […]
Read MoreA fully loaded HMM container ship waiting to dock at the Port of Oakland in California. Michael Vi/Alamy If given the opportunity, most people would use a time machine to right a wrong or see the future. But Wall Street seems to want to go back to the 1970s, when stagflation reigned. At one point, […]
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