The global economy is headed for an inflationary decade that will turn the world of investing upside down. That’s according to Vincent Deluard, director of global macro research at StoneX Group Inc., who argues that inflation is not transitory as many — including the Federal Reserve — insist, but rather a lasting feature of the new economic landscape that investors must prepare for.
On the seventh episode of Forward Guidance, Deluard gives Blockworks’ Jack Farley 5 reasons why high prices are no longer the cure to high prices, including today’s tight labor market, the flurry of post-Covid spending packages, and China’s withdrawal from its role as an exporter of deflation. Deluard argues that inflation itself is inflationary; while soaring commodity prices, supply chains bottlenecks, and excessive stimulus are undoubtedly the immediate drivers of the current spike in prices, the fundamental driver of secular inflation is an insidious increase in our collective preference for the present.
Watch the full episode below! 👇
Forward Guidance is a show dedicated to uncovering the heart of this conundrum. Twice a week, I’ll be speaking directly with fund managers, analysts, and financial industry professionals about how investors can grow and protect their wealth in this brave new macro world. These episodes will air on Tuesday and Friday.