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06 August 2021
04:35 hour

Transitory inflation?

Reddit Stock Market

18/05/2021 - 22:39

Can someone explain how inflation will be “transitory” (As J-Powell has referenced)? I can see how the exorbitant prices of raw materials will come down as global supply chain bottlenecks eventually resolve themselves, but when has a consumer business (such as a restaurant) ever taken back an increase in menu prices? I tend to side with the fed regarding the outlook on inflation in the near future. I don’t believe we will see a level of inflation that will decimate our economy and render the dollar worthless. However, I do expect higher levels of inflation than normal. And I’m not too sure about Powell’s comments that inflation is on track to mildly exceed 2%. I think it will be a bit higher than that. What do you make of Powell’s comment and what is your outlook for 2021?   submitted by   /u/HotspurN17 [link]   [comments]


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  34. INFLATION , QE AND HEDGE AND BIG AWARDS ARE WAITING 50 % BOTTOM (20/05/2021 - Reddit Stock Market)
    Let me start with I am one of the bottom 50 % of the population , but this time ,this bottom 50 % wil see your game plan and will get the rewards . Lets start with fundamentals : 1- Our last days favorite subject : Somebodies call it beast , somebody says transitory , but I call it my best friend at least for nowadays "INFLATION " The headline CPI year-over-year increase at 4.2% was the highest since 2008. Energy prices rose 25% and gas prices 50%. Rising energy prices filter through to almost everything. Used car and truck prices were up 21%. Rents rose 2.1%. If you substitute home prices for rents, that number more than doubled. ​ https://preview.redd.it/sjfr0peahb071.png?width=761&format=png&auto=webp&s=60c6f4f04b58e004531adf44365fe8b251bf0253 In fact this is a reality that all of us encountering nowadays , but until now Fed always insist to use TRANSITORY . In fact all we know this reality Because ?nflation is something that you do not see . Inflation is something that you feel . I am sure all of us less or more were feeling in last days . O HEADLINE FOR PEOPLE METAL OWNERS : FED ADMITTED THAT INFLATION MAY NOT BE TRANSITORY Please don't blame especially people who hedge themselves because they are waiting 10 years this moment to come and what a wonderful to hear from : Fed :"A number of participants remarked that supply chain bottlenecks and input shortages may not be resolved quickly and, if so, these factors could put upward pressure on prices beyond this year." What was the real story of yesterday ? Why Fed admits and yields try to spike ; Reverse repo usage just surpassed Covid crash highs. We are effectively out of repo market collateral, Fed is cornered, and there is no place to park $1TN more in reserves. The market understood this harsh reality : Fed can't do 18 more months of QE; ​ https://preview.redd.it/0qigodwbhb071.png?width=900&format=png&auto=webp&s=8a0c4a728d6e3c35c8fd560c6f84825b5592f2a9 ​ https://preview.redd.it/4b5uro0dhb071.png?width=700&format=png&auto=webp&s=2cfa77bf706408a900ab25b1b4edf2bf8015c576 So now I can say why I am one of the 50 % bottom that used above : Because this time I saw their game and will not loose again and here also try to share those datas to say to you open your eyes this the real game that Fed and Big 1 % are playing but all those 1 % know well the realities and they hedge themselves against Inflation and to the trillions of Usd free floating money . And the expected question when ?nflation increase Fed increase the rates ? So the game is over now 50 % hope understood the Fed and 1 % game to convince people for possible rate spikes but as said before this time 50 % saw theri game : Yes, inflation expectations likely fell while nominal yields popped on hints of a #QE tape in the future. This is all just talk: inflation is rampant and the #Fed can't raise rates or reduce #QE significantly or for any length of time unless they want to collapse everything. So position against all those ? where are the money ? 1- Metals : Gold , Silver , Platinium , Iron , Cobalt whatever shinny ( always keep in mind nowadays trend is green energy and choose more metals used all in those new energy ) 2- Miners ( Mostly new green energy raw materials producers ) 3- Inflation bonds 4- Oil futures but attention for possible Usa Iran deal and big oil amount can release to the market in a near future . Iran now is fully ready just wait usa green light to pump the oil . 5- Developing worlds bonds ( Turkey is my favorite nowadays their interest rate is 19 % which is amazing high and alrerady the currency collapsed 25 % so everything ready for flying ) Keep away from China because of possible unexpected policies .   submitted by   /u/Kimaxw [link]   [comments]
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  36. Regardless of the Feds assessment of the US economy what are you seeing first hand around you? (31/03/2021 - Reddit Stocks)
    Our business has a lot of exposure to the energy industry and we are seeing companies file bankruptcy and continue layoffs (in the last 60 days). A lot of the attitude is that drillers aren't going to jump back in with the push away from oil which could definitely drive prices higher if demand does pick up (or we will start importing more). I was just curious what you guys may be seeing first hand rather than relying on the media to tell me how great our economy is doing (or will be doing shortly). I also wish we had a better way to monitor inflation then relying on the fed. It sure seems like everything is a lot more expensive. Transitory is a good excuse but I don't know that things will settle down that quickly.   submitted by   /u/GMEgotmehere [link]   [comments]
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  37. inflation question (14/07/2021 - Reddit Stocks)
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  38. In case you've missed what's going on in the US (03/06/2021 - Reddit Stock Market)
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  39. Are we in a stock market bubble? Or are these reasonable prices based on rising inflation? (16/06/2021 - Reddit Stocks)
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  40. The Fed: Fed officials split on outlook for inflation (07/04/2021 - Market Watch)
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  41. Will a 10-year high in commodities be more than transitory for CPI? - At the Open (06/05/2021 - Seeking Alpha)

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  46. Fed's Randal Quarles still sees inflationary pressures as 'transitory' (updated) (25/05/2021 - Seeking Alpha)

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  47. Inflation Stocks (12/05/2021 - Reddit Stocks)
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  48. Inflation knocking at the door? Here is how equity, debt investments may get impacted (08/06/2021 - Financial Express)
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