Inflation
In warning about the deteriorating outlook facing the sector, Man joins the likes of BlackRock Inc. and Fidelity International who have also recently sounded the alarm. BlackRock said there is no immediate end in sight for the taper scare, while Fidelity said the groundswell of reflation means the worst pain may still lie ahead for emerging-market bonds.For Chua at Man GLG, a key tipping point may be approaching.The main danger at present is not just the rising level of U.S. yields but the combination of a market that is overly complacent about the prospect of central-bank support, combined with the danger of Fed mistakes in combating the impact of the pandemic, Chua said.The inflation threat poses a real risk for investors. Just due to the base effect, both CPI and core PCE are likely to increase beyond 2% by the 2Q21. On top of the $900 billion fiscal package approved in December 2020, the Biden administration is likely to pass another $1.5 trillion or more of fiscal stimulus this year”“When considering all these factors together, this could put further pressure on inflation expectations and result in more persistent price increases”The flood of capital into developing-nation assets is already starting to slow. Inflows into stocks and bonds fell to $31.2 billion in February from November’s record $107.4 billion, according to data from the Institute of International Finance.
May be time for a Market timeout. I feel like i just read a scary ghost story.
May be time for a Market timeout. I feel like i just read a scary ghost story.
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Mcsnacks H Tupack OP : Shit is getting real. Real scary.
AlohaKid : Any links to articles? You really think so??
chgocal123 : Wow I just was talking about pulling out because I don’t like what the future holds, what I see anyway. Doesn’t look too bright
Mcsnacks H Tupack OP chgocal123 : Inflation causes deflation in market. They have screwed up all the angles trying to adjust one for this and another for that until its all skewed in too many directions and is about to cause a domino effect. At least when a stock declines 10% in a day it can’t be shorted for 48hrs.
Mcsnacks H Tupack OP AlohaKid : Look up zero hedge. They have all the the articles on all the stuff they have messed up and how if one fails all of them fail. And it spreads across the entire world
Mcsnacks H Tupack OP chgocal123 : I never pull out.
I couldn’t resist.
Mcsnacks H Tupack OP : The next stimulus is basically like putting out a house fire by driving a gasoline tanker into it.
treydongui : I know I have these same worries also and these guys play on our emotions as well. that's why I'm trying to find Future innovations of companies that won't die off when everything goes online. not sure if that's the full answer to getting around all the money they've dumped in every company but that's what I've got so far
treydongui AlohaKid : I think it has been for a while but at the same time don't make your situation any worse than it already is
Phyrevixen Mcsnacks H Tupack OP : What a visual, thanks for that. I’m gonna go cry myself to sleep now, bye.