Surveillance: Inflation Target with Slok
Bloomberg Surveillance
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The Unspoken Reality of Inflation
As inflation comes down, that's when you start to see profits, revenues come down. This is spot on because inflation is not only about output prices, it's also input prices. Nominal GDP is a great misguess right now, isn't it? Absolutely. What matters for nominal earnings in the S&P 500,. which has grown 6% annually for the last 40 years, is all about nominal variables and nominal GDP - everything is measured in normal terms. When facing comes down, you should expect the bond market to look at that as well.
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