- The word inflation simply means rising prices. Because current usage conflates different conditions of inflation. it can lead to miscalculation and malnvestment.
- Some market commentators either because of self-serving motives or real concern about inflation conditions years from now are ginning up concern of inflation in the here and now.
- Rising prices are a normal function of the economy, and should in this case indicate a stronger healthier economy, not the start of devastating inflationary condition.
- I opine on what happens next and my trading strategy for the next few weeks.
- Key indicators to watch is the VIX, VXN, the all important ten-year, and any sign of real inflation (i.e. drop in productivity while labor costs rise).
For further details see:
Don't Listen To Inflation Hawks; Rates Will Stabilize. Here's What I'm Doing