Markets love inflation, just look at them futures zoom higher.
Gotta love ZERO RISK in the SP500 = $$$
- Thread starter makloda
- Start date
That is such a blanket statement, yet hardly surprising.
This works until it stops working, if salaries stagnate when CPI goes up, this can only lead to reduction of sales. Obviously, it isn't just about US market, as all of these companies have presence in other countries. But I think wage stagnation paired with worries of a rising CPI is the subject of most developed countries. If you remove cheap credit, then the house of cards collapses in a day.
The stated central bank policies ( US and Canada ) for over a year was to raise inflation. GDP is up 6.4%, unemployment is dropping, wages need to go up, US retail sales recently set a new ATH. Their plan is working.
There is no "house of cards". Hyperinflation is no more real as it was in 2009 when a bunch of people floated that theory.
Last edited:
Chipotle just raised their menu prices by a gigantic 4% because now they have to keep up with paying their workers more money. So the consumer in the end always gets fu$ked.
Chipotle hikes prices to cover the cost of raising wages
https://www.cnbc.com/2021/06/08/chipotle-hikes-prices-to-cover-the-cost-of-raising-wages.html
Chipotle hikes prices to cover the cost of raising wages
https://www.cnbc.com/2021/06/08/chipotle-hikes-prices-to-cover-the-cost-of-raising-wages.html
Sounds like a vicious circle to me.
Just like the employment report miss, and now the hotter than expected inflation data. Stock index all rally in the face of weak economic data. Take this for what it is...buy buy buy.
Don't forget its contract rollover today.
Don't forget its contract rollover today.