A message from Edge Investment Solution's Damon Walker:
Follow us on Instagram: Edge Investment Solutions
Follow us on Twitter: Edge Investment Solutions
Chart of the Week
Inflation has been anchored by structural factors in recent years, even as cyclical elements push prices higher. But at less than 40% of the US Core PCE Index, cyclical pressures (like recreation) can only do so much while acyclical components (like healthcare) average a rate of 1%. Sustained inflation would require a high hurdle rate for cyclical factors, and a significant uptick in acyclical levels.
Source: Federal Reserve Bank of San Francisco and GSAM SAS Market Strategy