The Misery Index — the combination of Inflation and unemployment — failed as a bearish criticism of the economy. Unemployment remains at 60-year lows, and Inflation has plummeted from 9% down to the 3s.

If you have a bearish mindset, and seek confirmation of that perspective, then the next economic critique after the Misery Index you try on for size is “Stagflation.” We have heard the S-word from Jamie Dimon, Stanley Druckenmiller, Bank of America, Barclays, Fox, Marketwatch, Kiplingers, and many others.

The definition from the 1970s + ’80s was the combination of slow growth, high unemployment, and rising inflation. But if Stagflation is your reason for being negative, you run into a similar problem: Growth has been robust, unemployment low, and inflation is way below its June 2022 highs.

Like so much of the “If it bleeds it leads” media, there is far less to this scary threat in the

Keep reading this article on Barry Ritholtz - The Big Picture.

Leave a Reply