Kevin Duffy: "Is the inflationary side of the boat getting too crowded?"

Is the inflationary side of the boat getting too crowded?  To quote Wall Street legend Bob Farrell, “When all the experts and forecasts agree, something else is going to happen.”  Some of these fears are justified, but many are overblown, at least for the foreseeable future.  Many factors driving up prices are in fact transitory, while others – namely high energy costs – may take years to fix.  Meanwhile, the Federal Reserve belatedly began addressing the problem by shrinking its balance sheet on June 1. 

Grab your popcorn, the next act in this play is likely to be deflationary.

~ Kevin Duffy, "Breaking Point: The interventionists lose control," The Coffee Can Portfolio, June 15, 2022