- Considering inflation is one of the critical economic issues today, investors and analysts would benefit from in-depth research regarding its causes and effects.
- Inflation is rising due to production cuts, high job quits, and ongoing monetary and fiscal stimulus.
- While government stimulus may end in 2022, the economy is now in an apparent "wage-price spiral" that will be difficult to stop without a significant economic recession.
- Most stocks have negative exposure to inflation since falling real incomes make it difficult for companies to pass rising costs onto consumers.
- Gold and energy producers may benefit while "safe" utilities, bonds, and consumer staples carry excess risk.
For further details see:
Inflation Will Accelerate Until The Economy Hits The Wall