An 'unfamiliar' era for investors has arrived after a 20-year 'regime': Morning Brief
Zettelkasten Automated Post
The market data page is currently experiencing delay issues which are being addressed. In today’s Morning Brief, the November Consumer Price Index shows a 12-month inflation rise to 2.7% with core inflation sticking to 3.3%. The upcoming Federal Reserve meeting presents a potential upheaval, with a divisive debate over cutting rates or maintaining them. RSM chief economist, Joe Brusuelas, refers to this scenario as a “regime change” in economics, implying the new, unfamiliar era post-pandemic, characterized by rising costs and differing politics, could eventually lead to higher interest rates and inflation.
This “regime change,” as Brusuelas expands on Yahoo Finance’s Stocks in Translation podcast, notes that the post-pandemic economy will be vastly different due to the significant changes global supply chains had to adapt to during and after the crash. Anticipating the American markets, he suggests fewer regulations, increased tariffs, reduced taxes, stricter immigration, and a growing trade deficit. Brusuelas argues the economy will be more resilient with distinctive gaps between winners and losers, which could present unique opportunities for forward-thinking investors. He believes these developments will not revert costs back to pre-pandemic levels and could drive economic stability by increasing interest rates.
#EconomicRegimeChange #PostPandemicEconomy #InflationRise #InvestorOpportunities #InterestRatesRise