What Did We Learn This Week? (09/29)—Supply constraints are secular
In this week’s article, Tim dives into recent treasury yields. Arguing that while the near term inflation numbers may ease, the long-term effect of supply induced inflation is a secular issue.
What Did We Learn This Week? (07/14)—Tim Pierotti, Chief Investment Strategist
It’s over. That’s the message from Blackrock’s 2022 Midyear Outlook. The economists and strategists at the world’s largest asset manager with a tidy $10 Trillion of AUM wrote,
What Did We Learn This Week? (07/08)—Tim Pierotti, Chief Investment Strategist
Let’s start with what we already knew coming into this week. We knew that financial conditions have gone from historically easy to historically tight in an incredibly short period of time. We knew the Fed isn’t letting off the gas until clear signs emerge that inflation is under control. Don’t forget, that includes wage inflation. While commodities might be breaking down and that helps, the Fed is a long way from seeing the kind of labor market softening they are going to need to start jawboning to the market that they might be pulling up on rate hikes. As evidenced by the yield curve inversion, fear of an imminent recession has trumped fear of runaway inflation.