What do a full tank of gas, a week of groceries, your new home, a worn suit, and a back-to-school outfit have in common?
They have everyone more loved this year.
Consumers are facing the highest costs in about a decade, and it will most likely persist until at least the middle of next year. Many of the most productive experts in the market have to sound the alarm about the trend.
For billionaire investor Paul Tudor Jones, inflation is the number one facing society.
“It’s certainly the biggest risk to money markets, and I’m thinking about society at large,” Jones told CNBC in an Oct. 20 interview.
Jones, founder and investment leader at Tudor Investment Corporation, said it’s clear that inflationary pressures are not “transitory,” given that the economy has overheated in part thanks to unprecedented degrees of fiscal and financial stimulus.
He said stocks, fixed-income assets like bonds, are much larger investments in the “inflationary world. “
Icahn said inflation is setting in – in the direction.
“The market will definitely hit the wall. I think there will be a crisis in the way we go, in the way we print money, in the way we head toward inflation,” he said in October on CNBC.
For Jeff Gundlach, inflation comes down to two factors: wages and rent.
The billionaire “king of bonds” and chief executive of investment company DoubleLine told CNBC in an Oct. 22 interview that those two points “are waiting for the scenes to stay high. “He said wages for low-wage jobs have reached “high. “levels, and soon this trend is very likely to increase the salaries of supervisors as well. When it comes to the housing charge, Gundlach said over the past six months, the median hiring has increased by more than 10 percent.
Druckenmiller, for his part, believes inflation will exceed 4% for at least the next 4 years, and the Federal Reserve will be slow to raise interest rates to counter it, Bloomberg reported.
Just a year ago, billionaire investor and founder of Duquesne Family Office said inflation could reach as high as 10% with markets in “rampant mania. “That party, he told CNBC at the time, will end in a “hangover. “. “
Greenspan, a former chairman of the U. S. Federal Reserve, said “unprecedented amounts of government spending” and “booming federal debt” can lead to higher inflation during a longer era.
Most sensiblely, Greenspan, who is now a senior economic adviser at Advisors Capital Management, sounded the alarm about demand-side inflation, where “too many dollars chase too few goods and services,” and source-side inflation, where shortages of energy, transportation and commodities predominate.