Wall Street flogs stagflation dead horse

Not much change from the smartest guys in the room this week. BofA remains committed to its stagflation blowoff and bust thesis:

The Tale of the Tape: liquidity @ record high, bitcoin @ record high, stocks @ record high, labor market quits rate@ record high, wage growth plans @ record high (Chart2)…bond allocations @ record lows for institutions (net-80% inBofA FMS), for private client (17.5% at BofA GWIM), and forUS households (19%,lowest since 1984–Chart4).

The Price is Right:transitory inflation fear “temporarily” allayed by US admin focus on supply chain bottlenecks; and yet Manheim used car prices surge to new cycle high (Chart5), while the“big stuff”, rents & wages, next leg of inflation/stagflation trade.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.