Inflation Fears Lead Investors to Bet on Rate Rises

Dave Rosenberg -BREAKFAST With DAVE Feb 15/2011


WHAT IS IN THE MARKET AND WHAT ISN’T

Yesterday’s FT provided a classic case in point:

Inflation Fears Lead Investors to Bet on Rate Rises

Inflation is on everyone’s brain. Everybody is braced for it. Everyone expects it.
It’s already priced in. So by definition, this is not where the surprise will be and it
is surprises that move markets. This is very good news for the bond market from
a contrarian stand point.

Also have a read of Higher Prices Are Looming, Companies Say on the front
page of today’s NYT. When anything makes it to the cover, you know it’s priced
in.


is he right?