Will fire or ice kill markets?

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More to the point, does it matter? BofA still thinks fire:

The Biggest Picture: US small business labor shortages & wage pressures worst in 50years (Chart2) = we are on cusp of policy pivot from pro-growth to anti-inflation (policy mistake has already happened…>$30tn of global stimulus ending in inflation).

The view: bull case is pandemic ending, bear case is pandemic ending and so is $30tnof emergency policy stimulus; more bearish Wall St positioning reflects concerns reinflation & China (Chart 6)…supports typical year-end rally…we say“sell it”…2022 surprise = rate hikes = +ve volatility, -ve credit, stocks, crypto.

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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.