The Dynamics Driving US Inflation
Finweek English|24 September 2021
US-driven global price increases may not be transitory thanks to the dynamics of oil supply.
Petri Redelinghuys
The Dynamics Driving US Inflation

I guess one of the bigger questions in the marketplace at this stage is around inflation and whether it is in fact transitory. We can expand on this by including the questions of what the impact is going to be if the US Federal Reserve eventually starts tapering or stops the monetary stimulus that they’ve been doing since the onset of the Covid-19 pandemic.

I believe that if we can answer these two questions, at least within some reasonable measure of accuracy, we should be able to position our portfolios to benefit from the coming change.

The first thing to look at is the inflation debate. Particularly US inflation, as the US economy is in large part a driver of international markets. One of the first things we are looking at is US employment numbers. At this stage there’s about 8.6m people who are unemployed (and are eligible for employment), while there is about 10.7m available jobs. Great problem to have, but still a problem. One that was created by complacency. Unemployed people are not incentivised to look for work because they’ve been receiving enormous amounts of direct monetary stimulus, or cheques in the mail, directly from government because of the economic fallout of the global lockdown caused by the pandemic.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM FINWEEK ENGLISHView all
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 mins  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 mins  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 mins  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 mins  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 mins  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 mins  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 mins  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 mins  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 mins  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 mins  |
5 November 2021