CML members, we are soon to get community out to everyone, for now I'll share my thoughts from there, here. 
Two narratives exist:
1. Getting over COVID, job growth, consumer spending, GDP growth will cause permanent inflation due to the collision with accomodative fiscal and monetary policy.
Higher inflation means higher rates which impact long term valuations due to discount rates.
1. Getting over COVID, job growth, consumer spending, GDP growth will cause permanent inflation due to the collision with accomodative fiscal and monetary policy.
Higher inflation means higher rates which impact long term valuations due to discount rates.
2. Resulting inflation is temporary, just as COVID's recession was temporary; getting out is the start to another economic boom and a bull market.
Today, narrative 2 is winning.
In the long term, narrative 2 always wins.
It just doesn't happen as fast as we want it to.
Today, narrative 2 is winning.
In the long term, narrative 2 always wins.
It just doesn't happen as fast as we want it to.
Also, don't get slap happy.
Short term we are in a downtrend.
Short term we are in a downtrend.
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