Readers will recall that I’ve been tracking the contest between three market narratives for months:
- Good news is bad news: meaning reopening and ongoing fiscal stimulus has triggered inflation leading to a market shock.
- Bad is good news: meaning the inflation pop is temporary and ongoing low yields will deliver higher values yet.
- Good news is good news: meaning reopening and fiscal-led growth will lift inflation a little but lowflation will continue to support markets.
The leading bank for the first case has been BofA and doubts are creeping in:
