The chicken littles fretting about inflation are ignoring something: the “bonus” $2.9 trillion that’s primed to ignite stocks—one group of stocks in particular.
The $2.9 trillion isn’t a new stimulus plan (although those seem to roll out daily). It’s the extra savings hoarded by consumers around the world. To put that in context, global GDP is about $89 trillion, so the total saved will amount to 3.3% of extra growth when it’s finally unleashed.
You’d think most economists would have already accounted for this savings glut in their projections. You’d also expect markets to price in this information. But neither is the case.… Read more