Inflation vs. Reflation: Why Risk Asset Prices Hinge on the Difference

Published on
January 22nd, 2021
Duration
81 minutes

Everything You Wanted to Know About Inflation, Round 2 — Ask Me Anything with Steven Van Metre and Michael Ashton


Inflation vs. Reflation: Why Risk Asset Prices Hinge on the Difference

Live ·
Featuring Jim Bianco and Ed Harrison

Published on: January 22nd, 2021 • Duration: 81 minutes

James Bianco, president of Bianco Research, joins Real Vision managing editor Ed Harrison to discuss whether inflation or reflation is on the horizon and how either would impact risk asset prices in 2021. Bianco explains that markets often react to the start of the nominal growth cycle similarly—whether inflation or reflation is occurring—as it’s difficult to distinguish which phenomenon is leading economic growth. Even as the consensus is reflation, Bianco expresses his concern over inflation posing an issue. He also reflects on why the valuations of non-profitable tech stocks have risen so rapidly and expounds on how this is in part due to a significant shift in the investors’ preferences for trading in individual names.

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