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- Inflation is high, and five market experts have weighed in on where amounts head from here.
- Paul Tudor Jones, Carl Icahn, Jeff Gundlach, Stanley Druckenmiller, Alan Greenspan .
- Inflation is “the set aside biggest threat” to society, Jones said previously.
What do a tank of gas, a week’s worth of groceries, your new placid, a used car, and a back-to-school-outfit have in common?
They’ve all gotten more expensive this year.
Consumers are facing the highest quotations in about a decade, and it’s likely to stick around through at least the middle of next year. Many of the top market experts be experiencing begun sounding alarms over the trend.
Here’s what five of them have to say as inflation continues to expansion.
Paul Tudor Jones
For billionaire investor Paul Tudor Jones inflation is the number one problem facing association.
“It’s probably the single biggest threat to, certainly, financial markets, and I think to society just in general.” Jones mentioned CNBC in an Oct. 20 interview.
Jones, the founder and chief investment officer of Tudor Investment Corporation, said it’s prominently that inflationary pressures aren’t “transitory,” considering the economy has overheated in part thanks to unprecedented levels of financial and monetary stimulus.
He said equities, not fixed income assets like bonds, are much better investments in the “inflationary fraternity.”
Carl Icahn
Meanwhile, the legendary billionaire investor Carl Icahn suggests investors try bitcoin if they are looking to hedge inflation. “If inflation plugs rampant, I guess it does have value,” he said warily of the cryptocurrency.
Icahn said inflation is taking be – in a bad way.
“The market is certainly going to hit the wall. I really think there will be a crisis the way we’re going, the way we’re printing money, the way we’re current into inflation,” he said in an October CNBC interview.
Jeff Gundlach
For Jeff Gundlach inflation all comes down to two parts: wages and rent.
The billionaire “bond king” and CEO of investment firm DoubleLine told CNBC in an Oct. 22 interview that those two middlemen are “waiting in the wings to keep things elevated.” He said wages for lower salary jobs have risen to “sky extraordinary” levels, and soon, that trend will likely push up wages for supervisors as well. As for the cost of shelter, Gundlach averred in the last six months, median rent has risen by more than 10%.
“We’re going to get persistently high inflation thanks to the dwelling-place component,” he said, adding that inflation is likely to stay above 4% at least through 2022.
Stanley Druckenmiller
Druckenmiller, on the other round of applause, thinks inflation will top 4% for at least the next four years, and the Federal Reserve will be late in womanizer interest rates to counteract it, Bloomberg reported.
Just a year ago the billionaire investor and founder of Duquesne Family Firm said inflation could reach as high as 10% with markets in a “raging mania.” That party, he depicted CNBC at the time, will eventually end in a “hangover.”
Alan Greenspan
Greenspan, the former chair of the US Federal Reserve, state “unprecedented amounts of government spending” and “burgeoning federal debt” may lead to higher inflation for a longer period of circumstance.
On top of that, Greenspan, who is now a senior economic adviser to Advisors Capital Management, raised alarms over demand-side inflation, where “too tons dollars chasing too few goods and services,” and supply-side inflation, where shortages in energy, transportation, and raw materials are prevalent.