Anti-Goldilocks Manifests: The structural shift away from a “2% world”
The world has changed, the portfolios have not
In the 20th century, the average inflation rate among G7 economies was 5%. In the first two decades of this century, it was 2%. The interlude of very low rates, inflation, and growth may have been caused by factors that seem to be reversing: rapid globalization, low public debt.
These reversals [can] create conditions that are more similar to the 20 th century than the 21st...
He is talking, of course, about our Anti-Goldilocks concept first discussed publicly back in March 2022.
We’re happy to see them confirming our understanding a full 3 years afterwards. This has some nice analysis of how theworld has changed, but portfolios are still neokeynesain in nature and cling to the goldilocks effect ,when in fact her opposite is already here