James Montier on Whether Inflation will be Transitory

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About This Episode

If there was a word of the year for 2021, it would be “transitory.” Ever since the Fed declared that inflation would be transitory in March 2021, analysts have challenged that assertion and, indeed, have questioned the definition of transitory. Inflation has broad ramification for financial plans, since it affects interest rates, the price of assets and whether cash flows will be sufficient to keep pace with rising prices of goods and services. Here to discuss that question is James Montier, the co-author of two recent commentaries on the likelihood of transitory inflation and how investors should protect against various outcomes.

About Our Guest

James Montier is a member of GMO's asset allocation team. Prior to that, he was the co-head of global strategy at Société Générale and has been the top-rated strategist for most of the last decade. James is the author of three market-leading books: Behavioral Finance: Insights into Irrational Minds and Markets, Behavioral Investing: A Practitioners Guide to Applying Behavioral Finance, and Value Investing: Tools and Techniques for Intelligent Investment. He is a visiting fellow at the University of Durham and a fellow of the Royal Society of Arts. He has been described as a maverick, an iconoclast, and an enfant terrible by the press.

Show Notes

Here are links to the two-part series on inflation by James Montier and his colleague, Phillip Pilkington:

Part 1: Inflation – Tall Tales And True Causes and

Part 2: What To Do In The Case Of Sustained Inflation

Here is a link to the review of the book by Charles Goodhart on demographics and inflation.