|
Ol’ Wisco | I believe most investors have accepted a ZIRP for the foreseeable future and that is likely baked into asset prices already. The issue with inflation is the large saturation of consumer credit. There is only a small amount of forward looking consumer income to leverage debt against. Also we are seeing the Baby Boomers wanting to deleverage as they begin to approach retirement, meanwhile Gen X and millennials are entering the economy with an average of $30k of student debt (right wrong or indifferent these are the statistics) against them before they even obtain a job, let alone a work, or credit history. Without a large amount of credit space to saturate inflation may not be a large concern near term. | |
|