Higher Inflation Is Inevitable

There are over 2,000 publicly traded companies with market capitalizations in excess of $2 billion and close to 500 of them are priced at 10x current revenue with the majority of this sub group losing money.

The Russell 3000, which represents nearly 98% of public stocks in the United States, is up 110% in the last 5 years. That’s roughly 16% annualized where normally a large basket of stock would have produced around 9%.

Will Michael Burry and Peter Schiff be right with their forecast of hyper-inflation? I don’t know. What’s for sure is that when you look at a chart of the S&P 500 since 2009, it’s nothing but up up up hockey stick style.

Is that because so much value has been added to society? I don’t think so. What does seem to be happening though is a continued push of the can down the road now to a point now where the pain coming will be significantly greater than 10, 20, 30, 40 years ago.

Notes from the journey through existence. 20+ years analyzing and forecasting complex assets at the highest level of the economy.