Louis Gave of GAVEKAL is also a great macro thinker and he just changed his view.
He believes that we are “accelerating into inflation” and hence the portfolio allocation should reflect the new reality.
He also believes that we are moving from ” Disinflationary boom” quadrant to “Inflationary boom? quadrant and the portfolio should be shifted accordingly.
Harris Kupperman also wrote about emerging Inflation Dynamics on his blog.
My views
I belive the market is underestimating the impact of coordinating fiscal and monetary policy and is not appreciating the impact this can have on real economy and prices.
Source?
gavekal