What “Trumpflation” Could Mean to Investors

The best scenario for investors is steady and low levels of inflation that ward off deflation but also discourage central banks from hiking rates too rapidly, says a Wall Street Journal article from last month. So far, the article asserts, “Trumpflation” has been embraced by deflation-fearing investors—but shareholders should be “keeping a watchful eye on consumer prices, as they often rise much faster than anticipated.” Richard Turnill, chief investment strategist at BlackRock Investment Institute, argues that although higher inflation supports corporate earnings (since increased wages are then spent by consumers), it can push down share valuations. Jason Trennert, chief investment […]

CFA Panelists: Economic Bears, Stock Market Bulls

The CFA Institute held its Global Financial Crisis Roundtable Thursday, with institutional expert Theodore Aronson, Goldman Sachs’ Abby Joseph Cohen, bond expert Martin Fridson, and economist Jason Trennert speaking in a panel discussion moderated by The Wall Street Journal’s Jason Zweig. U.S. News & World Report’s Kirk Shinkle offers the following observations from the hour-plus discussion: “Cohen made it clear she thinks that many (though not all) markets have fallen enough to make new opportunities attractive. ‘There is value being re-established,’ she said. All the analysts said the macro factors, including the incoming administration, will matter for markets. There, Cohen […]