Economics
Yardeni Sees Chance That Stagflation Proves Best Case for Stocks
- Strategist says Fed won’t raise rates enough to spur recession
- ‘The bond market hasn’t made any sense to me for over a year’
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The idea that stagflation might not be the worst thing for the U.S. economy shows just how treacherous these times are for investors.
Veteran investment strategist Ed Yardeni says an environment of high inflation and slower economic growth could even be the best result for U.S. equities, given that the Russia-Ukraine war looks like an accelerant for consumer prices already rising at a 7.5% pace. The war could cut $1 trillion from the value of the world economy while stoking inflation this year by causing another supply-chain crisis, according to the U.K.’s National Institute for Economic and Social Research.