Financial markets ‘splendidly untroubled by inflation’

ZeroHedge/Simon White-Bloomberg/6-27-2023

“After a brief dalliance with concern around rising price growth in 2021 and the first half of 2022, the market has been happy to gorge on higher-duration stocks as if inflation is yesterday’s problem. But this is woefully misguided. Inflation will return, with a re-acceleration likely late this year or early next year as China’s monetary and fiscal engines slowly shudder back into life.”

USAGOLD note: The markets see inflation to be in regression. White says we are simply experiencing a hiatus. Inflation, as we have stressed in the past, is a process not an event. This article concentrates on sector rotation in the stock market, but the important point made from our perspective is that inflation is not gone and should not be forgotten.