The Return of Stagflation

When the topic of a potential return of stagflation was raised by me in previous media appearances and during my Market Forecast events, you would have thought that I was speaking heresy. Yet, today’s revised productivity and unit labor cost data may help change some minds.

As noted in yesterdays’ commentary, the combination of slowing profit growth and rising inflationary expectations (if not outright pressures) may be the catalyst for the second down wave in stocks next month.