From the very sharp Torsten Slok, again I find him arresting my attention rather frequently these days . He comments: Torsten Slok: 10% Nominal GDP Growth Coming?
From the very sharp Torsten Slok, again (I find him arresting my attention rather frequently these days). He comments: Torsten Slok: 10% Nominal GDP Growth Coming? https://www.apollo.com/wealth/insights-news/insights/daily-spark/10-percent-nominal-gdp-growth-coming: ‘Nominal GDP growth is currently solid at around 6%, while S&P 500 earnings growth has surged to nearly 40% YoY. A simple regression based on the historical relationship between the two suggests thatthe current pace of earnings growth is consistent with nominal GDP growth of 10%, see chart below…. [If so, then] interest rates will stay higher for longer,particularly when combined with the ongoing fiscal challenges… But I think this is wrong. I do not see the flood of demand coming that would drive such a huge spending acceleration and rapid runup in inflation. What I see, instead, is a shift from labor to capital. That appears to be one thing that Trump is managing to create.