Bridgewater’s Patterson Says Demand Shock Is Driving Inflation
- Sees higher wages and inflation that companies can pass along
- Positive on dollar and equities, financials more than tech
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Bridgewater Associates’s Rebecca Patterson offers a surprising reason for the surge in consumer prices, disputing the idea that a choked supply line is the cause.
“This really was a demand shock more than a supply shock,” the firm’s senior investor told Bloomberg TV’s Surveillance on Wednesday. “We have more ships than ever on the ocean. Ports are processing more imports than ever in the U.S. It’s just that the demand is that strong. Supply can’t keep up, and the release valve, if you will, will be higher wages, higher inflation. What we see in earnings season is, so far, most companies can pass that on.”