- I am not as sanguine about inflation as the US Federal Reserve: I expect it will be higher than the Fed forecasts, but I still think inflation will decline next year and beyond.
- In a sense, I believe inflation will revert to a pre-pandemic normal, while those who expect inflation to get out of control anticipate a normal reminiscent of the 1970s and 1980s.
- My golden rule is to only dismiss an outcome if you can show beyond a reasonable doubt why it cannot happen. If you can’t do that, consider the possibility that you will be wrong and what that might mean for your investments.
- So many investors have sounded the alarm: Current valuations are unsustainable and have to come down. And they have been wrong for more than a decade.
For further details see:
Inflation: What If It Doesn't?