The Specter of Inflation
Due to the CPI-inflation we are experiencing today, market participants are starting to draw strong parallels with The Great Inflation period from 1965-1985 (“TGI”). It is always a point of suspicion for us when the foundation for a market narrative is based on comparing the contemporaneous period to only a single period in history. A full treatment of the differences in periods involves a lot of work and it is often, instead, more tempting to run with the quickest explanation to support one’s fears. We hope to provide a proper comparison of the periods and explain why inflation will not persist in the current environment as...