Stagflation fears overblown, Wall Street strategists say
Market expert on 3Q earnings: US expecting a less great season
UBS Managing Director and Senior Portfolio Manager Jason Katz argues there may be volatility ahead of us.
Wall Street strategists say mounting concerns over stagflation are a good opportunity to buy the dip stocks.
Stagflation, which is typically defined as a period of inflation with declining economic output, was the most common word Goldman Sachs clients brought up this week.
"Stagflation is not our economists’ base case expectations," wrote David Kostin, chief U.S. equity strategist at Goldman Sachs.
GOLDMAN CUTS FORECAST FOR US ECONOMIC GROWTH IN 2021 AND 2022
The S&P 500 fell 5.2% from Sept. 2 through Oct. 4 amid concerns regarding lofty valuations amid a backdrop of supply chain disruptions and labor shortages that developed in the wake of COVID-19.
The supply chain and labor issues along with trillions of dollars of fiscal and monetary stimulus have resulted in the consumer price index rising 5.3% year over year in September, near the hottest pace in 13 years. That backdrop, along with concerns over slowing growth, has sparked talk that the U.S. is entering a stagflationary environment, the likes of which has not been seen since the 1970s.