Posted on 02/28/2024 12:00:07 AM PST by RomanSoldier19
ast week, U.S. stocks surged to a fresh all-time high, but this upward momentum might be short-lived due to growing concerns of the economy entering a stagflation scenario reminiscent of the 1970s, according to analysts at JPMorgan Chase.
Marko Kolanovic, the bank’s chief market strategist, cautioned in a note to clients about the potential shift away from a “Goldilocks” scenario, where the economy experiences moderate growth without significant fluctuations, towards a period of stagflation resembling that of the 1970s. He emphasized the risk of the market narrative transitioning from a favorable Goldilocks scenario to one marked by stagflation, which could have significant implications for asset allocation strategies.
Stagflation, an economic condition marked by both stagnant growth and high inflation, presents a challenging scenario for policymakers and investors alike. This phenomenon, prevalent during the 1970s and early 1980s in the United States, was characterized by a combination of soaring consumer prices and elevated unemployment rates.
(Excerpt) Read more at msn.com ...
Prepare?
2+ years of it, so far.
BTTT
I mentioned years ago that there were people nostalgic for stagflation days and the Carter style BS.
They currently are in charge of the national finances.
Yay.
“‘Stagflation’”
BIGGER DEER ..... wooo hooo
I remember the size of those deer back in the 70’s....
in the early 80’s their were 18pt bucks all over ...
And they were not all greasy ... oil was in short supply...
So .... every body get ready, the season is about to open...
get your tags, grab your gear and head for the hunting grounds .... wooo hoooo
like we used to say ...
back in the day .......
...... if it’s brown ... it’s down
Well like David Allan Cole said “If that ain’t Country, I’ll kiss your ass.” Lived through it once, guess I can manage it again. Take care. Regards
</SARCASM>
Industrial economies advance slowly and are more affected by manufacturing and market demand. "Digital/technological/information" economies are resistant to stagflation because they are a function of disruptive innovation.
Having had experience with economists, I would say that they are often mired in history and are not good at envisioning the future.
Case in point, in the 1980's, when offices around the country were using desktop computers, Paul Volcker was still claiming that desktop computers would have no effect on productivity.
https://www.zerohedge.com/markets/us-gdp-grew-334-billion-q4-growth-cost-834-billion-debt
“US GDP “Grew” $334 Billion In Q4.... That Growth Cost $834 Billion In Debt”
Time to break out the old button “WIN!” (Whip Inflation Now) Anyone remember them?
The author of that article isn't wrong per se, but it depends on the particular company and industry and whether one is a long or short investor. I am a long investor for the most part and don't worry as much about economic downturns and temporary conditions.
Since that article was written my Nvidia holdings have increased 136% (I buy when the stock spikes downward) and my AMD has gone up 108%.
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