A couple articles that reinforce my theories around sagflation.
(1) Prices Squeeze Main Street in the WSJ today offers a proof point of the argument I made about a likely shake-out in consumer focused companies.
(2) Although the editorial has some unnecessary political undertones, How the Fed is Holding Back Recovery offers a similar position to my posting Is the Fed Driving us into an Age of Sagflation?
(3) My positions in the Chilean economy through ECH and copper prices through FCX should benefit from the growing demand for batteries, which require copper, as highlighted in the article High Battery Cost Curbs Electric Cars.
Each of these points build confidence in my macro thesis over the next one to two quarters. They also suggest that investors should position themselves deeper in the supply chain in companies with greater pricing power. This pricing power is relatively easy to determine at the moment since companies are trying to raise prices. If they have successfully passed prices along, then it is likely the the competitive pressures and customer negotiating power is not too great.
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