Too much confidence is placed in the view that inflation rises will be transitory
It is not often that I take a very strong view that runs directly counter to the market consensus.
On the rare occasions in the past that I have done so, it has been an uncomfortable feeling at first.
As highlighted by a recent Bank of America survey, markets are currently dominated by a consensus based on three core hypotheses: durable high global growth; transitory inflation; and ever-friendly central banks.
Mohamed El-Erian FT 30 June 2021
https://www.ft.com/content/77ed35a0-cf91-4c7e-b779-a57ecc6b1045
Near Zero until 2023. Really?
Imagine how much borrowing will be until then.
The debt level and the leverage will reach the sky.
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