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Albert Edwards: You Are Going To Be ‘Mighty Pissed’ When Your Wealth ‘Evaporates Before Your Very Eyes’
Albert Edwards is back with is tri-weekly weekly.
You're reminded that Albert is like Gandalf (the
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You certainly can’t stir all the FL winter visitors – cotton tops, snowbirds and or snow geezers – here on FL’s Treasure Coast with a traffic batton. Damn hard to make them drive the speed limit in a 35 mph speed zone and none apparently are aware of the invention of the turn signal. I’ve never seen A1A and US 1 so full of hesitant, lost, doddering and or just generally incompetent northern drivers, but on these roads they are. Perhaps like migratory birds they too know a big inflation storm or even a more catastrophic economic event – is coming and they want to make that one last trip to sunny FL and Disney World.
Coastal real estate prices just took a big and unwarranted percentage jump and as much as 100% over last year on some houses – just like they did in 2005. Crazy shit it seems is just in the air pretty much everywhere. Some animals present strange behaviors before earth quakes and volcanic eruptions. It must be one of the human animal’s surviving sixth sense/instinct kind of things. Whatever it is, it seems everyone knows it’s coming.
My brothers tell me it’s worse on the Sun Coast (or as they call it “The Wrinkle Coast”). They’re waiting for the dip (crash) to buy more rental property. Y/Y the last 2 months have seen a hesitant drop in prices and volume on residential sales.
Of course they’re behind the curve on curbing inflation, because they want more inflation. Careful what you wish for. Cuz inflation may not be as easy to stop as the bernank said it’ll be. Not without getting a financial crisis like yellen said won’t happen in our lifetime.
How do you think stocks and bonds, having historically low yields, would react to accelerating inflation? Standard bond-stock portfolios and risk parity trades look vulnerable.