Ray Dalio Believes Majority of Wall Street Estimates are Wrong
“I estimate that a rise in rates…will produce about a 20 percent negative impact on equity prices”.
You have already heard, but recent inflation numbers were pretty bad.
The Consumer Price Index report released Tuesday showed that prices increased by 8.3 percent from a year earlier. This is compared to the 8.5 percent increase in July.
Even though gas prices have decreased, other expenses, like rent, healthcare, and restaurant meals, have increased more quickly. For example, check out the graph below, where inflation rapidly increases, excluding food and energy.
If this trend continues, it could severely affect the economy and American households. Already, rising prices are putting a strain on budgets and forcing people to cut back on spending. However, if inflation continues to increase at this rate, it could lead to widespread economic hardship.
So the key questions are, 1) what can we expect? and 2) when would it happen?
