10-19-26 Why Bad Inflation May Be Good for Markets

Is inflation here to stay, or could higher prices eventually correct themselves? Lance Roberts explains why the difference between "good" and "bad" inflation matters for the Federal Reserve, interest rates, Treasury yields, and the stock market.

We examine what inflation trends reveal about consumer purchasing power, Federal Reserve policy, bond yields, and the outlook for investors. Could today's inflation pressures eventually become tomorrow's economic weakness?

0:00 - INTRO 0:51 - Heavy Week of Earnings Driving markets 2:05 - Markets Sell off on Friday 3:52 - Markets Still Stuck in Same Consolidation Range (S&P vs RSP) 5:56 - Banks' Six Weeks' Sell Off = Opportunity? 8:18 - Misunderstanding Inflation - Good vs Bad 10:47 - What Inflation Looks at: Rate of CHANGE in Price 12:49 - The only thing the Fed can control is your spending 14:26 - The Fed is coming after you 15:03 - A history of inflation, supply, & demand (chart: price & quantity) 21:00 - Headline vs Core CPI (chart) 22:50 - Wages are the Problem (chart) 23:34 - Labor Share of Output is 52% (chart) 26:20 - When Do We Have Demand Destruction? (now) 28:12 - How to Position Portfolios for 2027? 29:26 - The AI Cap-ex Spend Narrative (Data Centers Are Not New) 34:16 - Record Capex, Fading Growth (chart) 39:35 - What if Capex Growth Stalls? (chart) 41:03 - Risks to Capex Spending (chart) 48:02 - AI is Real (just like the internet trade) ==== Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton, Executive Producer ------- Do you enjoy our content? Rate us on Google: https://bit.ly/4b9JtEo ------- Watch Today's Full Video on our YouTube Channel: https://youtube.com/live/azh9TZhC4PQ?feature=share -------- Watch our previous show, "The Hidden Costs of Pet Ownership" https://youtube.com/live/msrXdknaVjg?feature=share ------- Articles Mentioned in Today's Show: "Bad Inflation Cures Itself. Good Inflation Doesn’t" https://realinvestmentadvice.com/resources/blog/bad-inflation-cures-itself-good-inflation-doesnt/ "AI Capex And Earnings: What Happens When Growth Slows" https://realinvestmentadvice.com/resources/blog/ai-capex-and-earnings-what-happens-when-growth-slows/ "The Kalecki Profit Equation And The Coming Reversion" https://realinvestmentadvice.com/resources/blog/the-kalecki-profit-equation-and-the-coming-reversion/ -------- Watch Today's "Before the Bell" report, "Tech Stocks Take a Hit" https://youtu.be/Cz1Gn2J62Yc ------- REGISTER for our next in-person event, "Retirement Blueprint: 12 Steps to a Financially Savvy & Secure Retirement," Saturday, November 7: https://realinvestmentadvice.com/resources/events/ ------- Get more info & commentary: https://realinvestmentadvice.com/insights/real-investment-daily/ ------- Visit our Site: https://www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN --- Subscribe to SimpleVisor : https://www.simplevisor.com/register-new --- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/

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