As inflation rises, is stagflation next?

March 05th, 2008 | Category: Federal Reserve, Economic Data

In his Street Smart Report, market historian and seasonal timing expert Sy Harding takes an in-depth look at the profitable outlook, explaining the Fed’s concerns by inflation and potential stagflation.

“Investors in their thirties and forties often don’t understand why the Federal Reserve sometimes becomes very worried about inflation.

“Their experience has been that, certain, the price of most everything rises by the long-term. But so what? They now pay $30,000 for automobiles their parents paid $10,000 for,

and their grandparents bought for $2,000. Homes that sold for $50,000 in a preceding generation now sell for $250,000.

“But their income has grown even faster, so their standard of living is significantly higher than it would have been fifty years ago. So what’s to concern about inflation?

Continue reading As inflation rises, is stagflation next?

Original post by Steven Halpern

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