203912, Inflation ist alles|
Eingetragen von Warren Buffett, 06.2.18 18:01
1) The significant re-pricing of inflation expectations over the past month shows that the market has been worrying more and more about an overheating of the economy. That is why rates have moved higher. And these fears culminated on Friday with wage inflation hitting a post-crisis high. And it is the threat of higher inflation and higher rates that is worrying the stock market because higher wages means lower profit margins and higher inflation means faster rate hikes from the Fed as the FOMC tries to slow down the economy and ultimately the revenue growth of S&P500 companies.
2) The market does not expect the ongoing stock market correction will have any meaningful negative impact on the real economy; if the market expected the correction to trigger a recession, then inflation expectations would also have crashed yesterday.