In this week's episode, Mark and I tried something a little different. We went super deep on one topic, namely inflation. The question we asked was "Have fears around inflation peaked? And if so, what are the implications for asset prices?"
We started off by taking a look at which categories were driving CPI inflation. We took a look at which of these categories were sticky and likely to persists (like owners equivalent rent and energy) or likely due to temporary, pandemic related issues (used cars).
Next we covered the differing roles that the Fed and Treasury have in inflation, and the wild price inflation in the price of goods. Mark gave his views on whether or not the Fed actually had room to tighten, or if they would just roll over like they have done in the past.
Finally, we ended the discussion on the question every investor should be asking: are we headed towards an environment of negative real rates? And if we are, which assets will benefit? For the answer to that, you'll have to tune into the show.
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