Summary: Last week, Chairman Powell announced the Fed will begin to “taper” its bond purchases by $15 billion each month. The latest reports show big numbers for both producer prices (8.6%) and consumer prices (6.2%) over the past year, a very tight labor market, weakening credit standards, and rising inflation expectations. To top it off, Fed Governor Quarles--an inflation hawk--submitted his resignation, giving President Biden five vacancies to fill with inflation doves next year, supporting the case for an accommodative Fed and continued inflation. Investors should take steps now to protect capital from inflation by reducing their exposure to high-multiple equities and increasing allocations to income-producing real assets.
I am learning so much from your posts. I appreciate how you can explain complex concepts in simple terms that I can understand. Next step for me; identify the best companies to invest in that produce real assets. Thank you very much!
Dr. Rutledge, in your opinion, will national COVID blame if assigned to China, lead to adjustment financially in a significant way?
I am learning so much from your posts. I appreciate how you can explain complex concepts in simple terms that I can understand. Next step for me; identify the best companies to invest in that produce real assets. Thank you very much!