Warren Pies, founder of 3Fourteen Research, returns to Real Vision to discuss why he thinks inflation fears are perhaps pre-mature but that fiscal stimulus and the corresponding household net worth will play out in consumer spending and inflation around two quarters out. Even if we get inflation, Pies argues that inflation will have to be a lot higher for longer before it affects Fed policy. The mixed signals being sent from crude oil also factor in as a red flag for inflation because rising crude oil prices are a leading indicator of inflation. Warren is still positive on the reopening but believes many of the reopening stocks have repriced accordingly. He likes “entrenched interests” that already have deep ties to Washington D.C. to play increased fiscal. Filmed on April 12, 2021.

Key Learnings: Outlooks for higher inflation and crude oil prices are potentially pre-mature. The reopening is going strong but reopening assets have repriced accordingly. Entrenched interests with deep histories of doing business with the federal government are Warren’s play on increased fiscal spending.