If Alber wasn't concerned I'd be concerned.
From Business Insider, April 16:
A famed permabear warns the bond market is hinting that double-digit inflation could be on the horizon
- Bonds are flashing a sign that inflation could be a big problem again soon, Albert Edwards says.
- The famed permabear pointed to the rise in Treasury yields as markets price in hotter price growth.
- Headline inflation could rise well into the double digits, he estimated.
The bond market is sending a bad signal about inflation, according to one Wall Street permabear.
Albert Edwards, a global strategist at Société Générale, said he believes bonds are flashing a worrying signal about the economic backdrop and the outlook for stocks. That's because US Treasurys look like they're slipping into a secular bear market — for bonds, that means prices are falling while yields rise — something that could hint that inflation is on track to rise to its highest level in nearly half a century, Edwards wrote in a note to clients on Thursday.
"Inflation is heading up to 1970s levels, not (only) because of the US/Iran war, but due to the ominous secular themes of fiscal dominance and political weakness," Edwards said, referring to how higher national debt levels are inflationary and make investors more cautious about holding government bonds.
Edwards pointed to the recent rise in Treasury yields, a sign that demand for government bonds is already cooling as investors eye the economic impact of the Iran war and price in hotter inflation.
The 10-year US Treasury yield was around 4.28% on Thursday, up 32 basis points since the start of the Iran war....
....MUCH MORE
