How long will inflation last? This is not the 1970's -- economic shut down and trillions in economic stimulus weren't there then. Is this inflation sustainable or transitory? Look at CPI with Base Effects, and watch them work through the system. Also, Inflation cannot grow much faster than economic growth over time. Economic growth is likely to drop back down in the 2% level (or less) as the effects of stimulus wear off. Most inflationary pressures are coming from areas that were shut down, and are now opening up. 3 Minutes on Markets and Money hosted by RIA Advisors Chief Investment Strategist, Lance Roberts _________ Personal finance free online events: ➢ 5/22/21 8am (CT) - Candid Coffee: Financial Mid-Year Review Learn about the best accounts to save for healthcare, retirement, and emergency reserves. REGISTER for this live event: https://zoom.us/webinar/register/6216201656274/WN_33C8T9JZSPuhc_x1VIASpw ➢ Available Now - Retirement Right Lane Class: RIA Advisors can make sure you're in the right lane for retirement with tax-smart strategies to avoid the risks that would drain your retirement savings. Learn how to protect and grow your investments over time. REGISTER here to access now: https://register.gotowebinar.com/register/1904270988863418635?source=Real+Investment+Advice+Website _________ ➢ Watch The Real Investment Show LIVE every morning on our Youtube Channel: www.youtube.com/c/TheRealInvestmentShow ➢ Listen to The Real Investment Show every morning on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-real-investment-show-podcast/id1271435757 ➢ RIA Newsletter: Subscribe to our free newsletter for market updates, analysis, financial tools and more: https://realinvestmentadvice.com/newsletter/ ➢ RIA Pro: 30 Day Free Trial: Sign up for in-depth analysis, research, portfolio models, and more: https://riapro.net/homeand more: https://riapro.net/home _________ GET IN TOUCH: Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN SOCIALS: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #3MinutesOnMarketsAndMoney #LanceRoberts #Inflation |
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2 comments
Danilo Paterra
2021-05-13 at 16:16 (UTC 2) Link to this comment
Lance, nobody knows! Let's see if this is only base effects. You forgot a potential decline of the dollar by huge printing. The logic would be that the FED stops right now!
DataGeek
2021-05-14 at 14:08 (UTC 2) Link to this comment
All you need is a few months to change purchasing psychology and change the velocity of money. MV will overwhelm every other metric since base money is so high.