Baby boomers don’t do anything small, including retirement. Market sentiment is getting very bullish. More shots fired in the inflation debate.
The worker shortage has been caused by a number of factors. One of them is the accelerated retirement of baby boomers. According to this analysis, out of 5.5 million people who have not come back into the labor force, 3 million are boomers. The question is how many of these early retirements are permanent versus those who will eventually find their way back into the workforce.
Mysterious Ways: Bullish Sentiment Grows, With Positive Offsets (Liz Ann Sonders)
A chartfest that shows investors are very bullish. You know the old saying that too much of a good thing can be bad? Well it’s true when it comes to market sentiment. When everyone is bullish, that usually signals it’s time for a market pullback.
However, this doesn’t mean a bear market is imminent. The 5% pullback we saw a couple months ago was enough to cool market sentiment. And Liz Ann also makes the point at the end of the piece about how most individual stocks have had at least a 10% correction this year.
Why all the inflation worries (Project Syndicate)
The inflation debate among financial experts continues. Here, economist J. Bradford DeLong makes his case for team transitory by pointing out the sticky-price CPI is still within the range of the lower inflation we’ve enjoyed over the past 30 years.
On the other hand, arguments like the one made here show the recent surge in demand is not going to go away any time soon. This will in turn push wages even higher in an attempt to find more people willing to work. More people working at higher wages will increase demand, which will increase wages…well you get the idea.
Who is right? Ask me in 2024. As with most economic debates, this one will take years to play out.