PLW - Inflation Is Here. But For How Long?

• The pandemic disrupted a well-tuned but perhaps overly optimized global economy and time-shifted the production and consumption of various goods.
• Fed officials have told us repeatedly they are not worried about inflation; they believe it is transitory. We are a bit less dismissive of inflation, and the two factors that worry us the most in the longer term are labor costs and interest rates.
• We’ve observed significant inflation in asset prices over the last decade; however, until this pandemic, we had seen nothing yet. It is becoming more difficult to find undervalued assets.

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