The Russian activity in Ukraine will push up oil prices and this will drive up the inflation impulse throughout the world.
The analysts calling for Fed stimulus to offset this problem are likely going to be disappointed. Will the Fed cut rates from here? No. Will they do more QE? No. They are still doing the last little bit of pandemic QE right now!
There are many, many similarities to the early 1970s.
As a reminder, I've attached a history of interest rates and inflation 1960-1980.
Robert Lloyd, CFA®
Chief Investment Officer
Lloyds Intrepid Wealth Management
Lloyds Intrepid LLC is doing business as Lloyds Intrepid Wealth Management. Lloyds Intrepid LLC offers investment advisory services in the State of Texas where registered and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Lloyds Intrepid LLC and its advisers do not provide legal, tax or accounting advice. Lloyds Intrepid LLC formulates retirement plans, investment strategies, portfolio construction and investment due diligence for clients with signed investment advisory agreements with us. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. All opinions and outlooks are subject to change.
© 2021 Lloyds Intrepid LLC