Looking just at G10 countries tells an interesting disinflation story. 9/10 countries are below their inflation targets. 9/10 have QOQ inflation numbers falling. Inflation is moving away from targets and not toward the targets. This sample is biased by Europe but the number are clearly in one direction. Disinflation is a global phenomena. This makes for a bond market that can continue to rise. Firms will have limited pricing power so profits should fall and revenues decline based on delayed spending. It is unlikely that the Fed will raise rates in this environment. It requires more not less action by the ECB.
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