SS checks going up 5.9% next year. The highest increase in decades. Inflation is now entrenched. Unions are striking everywhere for more money. Once the inflation genie is released it is hard to put back in the bottle.
Transitory inflation is not a few weeks, is more like few months to a year. Market is betting is not hyperinflation, just a few months of slow grind upwards and then slowly declining over a period of 1 year. So, market is now chasing those tech stocks that are able to streamline their workforce and operating more efficiently i.e. increased margin … don’t touch any stocks that have not been rallying hard.
To me covid19 is like the oil embargo in the 70s. An external shot to the system. It has shaken the system to the core and created runaway inflation. Hard to put the genie back in the bottle