Not saying Super Inflation. Not Referring to Stagflation. Simply Inflation. Yes the new normal will be much higher inflation simply due to larger than normal amount of printed money this time round due to Covid-19. Some big shots say Transitory. This could possibly leaves room for interpretation on what it really means later. There is good possibility this can be no much further increase but it can stays elevated.
From above chart, coming back to 2.x range seems not easy without causing a recession. It may mute a little but it will be relatively elevated to support businesses profit.
Then we look at Oil Prices below. Is not much high and unlikely to be back to Mar'20 crash figures unless market really crash again. Maybe the Shale Oil will go away which seems not likely else inflation will speed up further. They will keep OPEC in-check for next few years at least.
Regulator will be in tight spot. They can't raise the rate meaningfully even if there is as this will be counter-intuitive to businesses emerging out from Covid-19.
The Market may need to accept the reality that higher inflation for some time to come and this mean savers will be in trouble. And this is probably the better option than others.
Staying Vested in the Market is way to go as we ride through the waves.
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