Two fund behemoths say inflation is here to stay

Bloomberg Opinion/Mark Gilbert/2-3-2022

cartoon image of Elmer Fudd hunting for Bugs Bunny

“It looks like making money in financial markets will become more challenging for traders who’ve grown accustomed to central bank largesse. With the trend that’s been your friend in recent years becoming less reliable, safe refuge will prove difficult to find.”

USAGOLD note: The two fund behemoths mentioned are Norway’s sovereign wealth fund (we posted on Nicolai Tangen’s outlook a few days ago) and Blackrock. “If central banks do go ahead and hit the brakes,” says Blackrock, “they will likely learn that the damage to growth to get inflation down is too great.” Coming from two money managers with considerable capital in play, perhaps the rest of us might want to consider the gap between what the Fed would like to do and what it can do.


Image attribution: Elmer Fudd and Bugs Bunny, Warner Bros. Cartoons, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons

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