Globally producer price indexes have turned down quite decisively. China is trying to deal with deflation.
There are two main explanations, with diametrically diverging investment outcomes.
Under the first scenario, producer price inflation is a leading indicator for consumer price inflation. Falls in the producer price indexes will inevitably flow through to inflation indexes. Sell stocks, buy bonds.
Under the second scenario, the gap is an indicator that companies continue to be able to expand margins. It is a sign that companies are raising prices to consumers faster than their own costs are growing. Buy stocks
Join us in this week's podcast as Nucleus Wealth Chief Investment Officer Damien Klassen and Senior Financial Adviser Samuel Kerr dig into the arguments and look at the evidence.
Agenda:
View the presentation slides
To listen in podcast form click here
Get an obligation-free portfolio recommendation to see how we would invest for you
Learn more about the hosts
Find us on social media:
Want to know more? Click here to Subscribe
Nucleus Wealth is an Australian Investment & Superannuation manager that can help you reach your financial goals through transparent, low-cost, ethically tailored portfolios. To find out more head to Nucleus Wealth Website.
The information on this podcast contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Damien Klassen is an authorised representative of Nucleus Wealth Management. Nucleus Wealth is a business name of Nucleus Wealth Management Pty Ltd (ABN 54 614 386 266 ) and is a Corporate Authorised Representative of Nucleus Advice Pty Ltd - AFSL 515796
4.19 Will battery tech ice the petrol car? With Paul Martin | Nucleus Investment Insights
4.18 Why it's time to move assets offshore | Nucleus Investment Insights
04 Nucleus Wealth Empower - When bad news is good news
4.17 Boom & Bust: Australia's two-speed property market, with Martin North | Nucleus Investment Insights
4.16 From the Frontlines of Australia's Housing Boom, w/ Catherine Cashmore | Nucleus Investment Insights
03 Nucleus Wealth Empower - Unpacking Investment Performance
4.15 Will Vaccine issues cause a Stock Market Stumble? | Nucleus Investment Insights
02 Nucleus Wealth Empower - House Price Fundamentals
4.14 Will the Australian Dollar (AUD) continue to climb in 2021? | Nucleus Investment Insights
01 Nucleus Wealth Empower - Chatting Super
4.13 Positioning for success in post pandemic global stock markets | Nucleus Investment Insights
4.12 Are We Experiencing a Commodity Supercycle? | Nucleus Investment Insights
4.11 Reset: restoring Australia post pandemic with Ross Garnaut | Nucleus Investment Insights
4.10 Seeking value in alternative markets with Adrian Redlich | Nucleus Investment Insights
4.09 Australian Housing roars upwards, with Dr Cameron Murray | Nucleus Investment Insights
4.08 Inflation: Mirage or Oasis? | Nucleus Investment Insights
4.07 The Bull Case for Investment Markets in 2021 | Nucleus Investment Insights
4.06 The Art of Financial Advice | Nucleus Investment Insights
4.05 Does Gamestop (GME) spell game over for hedge funds? With Nick Morton | Nucleus Investment Insights
4.04 Mining: Short-term Blip or Structural Boom? With David Radclyffe | Nucleus Investment Insights
Create your
podcast in
minutes
It is Free
The emPOWERed Half Hour
U.S Property Podcast
Aligned Money Show
Dubai Property Podcast
The Ramsey Show
The Clark Howard Podcast