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Should Investors Fear Inflation?

Published 06/16/2021, 12:35 PM
Updated 06/16/2021, 01:30 PM
© Reuters.  Should Investors Fear Inflation?

The S&P 500 (SPY) has been relatively flat this week. Covid is fading away. The economy is improving. Thus, the only investment story worthy of debate is inflation. So let that be our focus today. Read on below to find out more….(Please enjoy this updated version of my weekly commentary from the Reitmeister Total Return newsletter).

The Fed has entered its two day window of meetings followed by an announcement Wednesday afternoon. The only thing investors care about this time around is their statements on inflation.

Is it just “transitory” as the Fed has stated in the recent past. Or is there enough persistence to the inflation with gauges hitting 4 to 5% of late to have them consider changing course. Most important of which would be a signal to lessen their $120 billion per month bond buying perversion to keep rates lower than market forces would naturally allow. (Also known as Quantitative Easing (QE).

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