Is stagflation already here?

Hopefully our Chief Equity Strategist and Economist, John Blank, has some answers.

1. Recently published survey data by a major bank showed about 60% of global investors think U.S. stagflation could be the dominant global market regime within three months. But here consumers are still spending, data, so far, shows progress being made on inflation. In light of that, how probable is stagflation for our economy?

2. What would have to happen for stagflation to set in?

3. A big story will be told tomorrow when the Fed’s preferred inflation gauge, the July core PCE inflation print comes out. Do you see that data supporting investor hopes for an interest rate cut next month, especially in light of Fed chairman Powell’s Jackson Hole speech last week?

4. How might this next PCE report combined with a rate cut next month affect the bull/bear story on the U.S. economy?

5. Is the bond market sending any concerning economic signals?

6. What’s currently on your wall of worry regarding our economy?

7. What about the global economy?

8. You wrote recently that American Economist Hyman Minsky is most directly and comprehensively associated with a theory explaining how financial markets inherently create their own instability, and lead to bubbles and crises. Based on his theory, do you see any bubbles in the markets or economy?

9. Zacks #1 Ranked stocks you’re watching include Watts Water Technologies (WTS Quick QuoteWTS - Free Report) , Armstrong World Industries (AWI Quick QuoteAWI - Free Report) and Levi Strauss (LEVI Quick QuoteLEVI - Free Report) .

Our Chief Equity Strategist & Economist, John Blank, on the economy and stagflation. With John, I’m Terry Ruffolo.