Chat with us, powered by LiveChat

Getting Lucky: Inflation Figures are Not a Reliable Signal

Inflation Figures
Print Friendly, PDF & Email

EDITOR NOTE: The Wall Street Journal wants investors to know that, as prices on almost everything rise due to inflation, the current inflation figures don’t provide a “reliable signal.” They also say that the Fed’s view that “inflation is transitory” and requires “a big element of luck” to be correct. WSJ’s Jon Hilsenrath notes in his video there is a lot we can learn about from the “Great Inflation” and “Stagflation” of the 1970s. Many experts see a lot of comparable signs between the underlying factors that caused this rough economic period in U.S. history and what is happening today in 2021. 

Investors following inflation figures should accept that they can’t extract a reliable signal from the wild swings, and just hope they continue to get lucky

It is always better to be lucky than right, and for the Federal Reserve and its view that high inflation is transitory, inflation figures lately have brought a big element of luck.

Digging into the numbers shows how easily that luck could go away. If it does, the quiet in markets could be upended. 

Read more at The Wall Street Journal

Bank Failure Scenario Cover Small Not Tilted



  • This field is for validation purposes and should be left unchanged.

All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

Precious Metals and Currency Data Powered by nFusion Solutions