While this was a surprise to those that have been taking their guidance from the Fed on the inflation trajectory, it should be no surprise to anyone that has been paying attention to policymaking and to soaring asset prices. Again, as we've discussed, what comes next is higher prices in day-to-day living. inflation Reuters, BillionairesPortfolio.comIf we annualize this month-over-month number, we are looking at a trajectory of double-digit annual inflation. This may not look great for stocks today, but broadly nominal prices of stocks will continue higher on this inflation scenario. It’s the return, after inflation, that will be smaller.

Source: Forbes May 12, 2021 21:22 UTC