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Bridgewater's Greg Jensen on AI, Inflation and What Markets Are Getting Wrong

Odd Lots

NOTE

The Future of Inflation and Fiscal Policy in a Changing World

The decline in nominal demand due to rate rise has mostly resulted in inflation falling instead of real growth. The economy has shown stubborn strength and stability, leading to a rally in equities. However, there are mixed pressures and a higher inflation world that markets haven't fully adjusted to. Fiscal policy is seen as a more likely solution for future recessions, but it may have a more negative impact on earnings than expected.

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