An Evidence-Based Approach to Markets with Larry Swedroe
Excess Returns
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Is Inflation Persistent?
I think the odds are fairly high that inflation is going to remain more persistent. We still have an incredibly tight labor market with about 1.7 jobs open for every unemployed person. Second problem is that very few people are talking about is this de-globalization. The Fed engaged in massive quantitative easing, blowing up their balance sheet from two to nine trillion buying 100 billion a month for years. That suppressed yields and led people to speculate at risky assets because they couldn't earn anything with CDs. Now you're getting the reverse of it. Stock prices are much more volatile like we've never seen before. I think the risk of lease defaults could be significant part of what plays out in the next
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