- 2021 has seen a big surge in cost pressures that seem to be accelerating. Energy and rent are two big components of this rising inflation.
- This inflation has eaten up all wage gains of the past year and recently we have seen sharply falling consumer sentiment and a very disappointing July Retail sales report.
- If economic growth starts to stall just as stimulus funds and other government entitlements run out, we could experience something not seen since the '70s.
- That namely would be stagflation which would have negative impacts on the market. How I am preparing for this possibility in the paragraphs below.
For further details see:
Stagflation: A Clear And Present Danger