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Global economies are facing rising stagflationary risks due to macro pressures set off by the recent oil shock, according to Bob Elliott. In his latest commentary, Elliott highlights that global flash PMIs provide an early indication of spiking inflation coupled with a rapid deterioration in demand just a few weeks into the Iran war.
The assessment paints a challenging outlook for economic activity worldwide, with inflation surging while demand collapses in key markets. Elliott warns that these conditions could persist if current macro pressures continue.
Elliott previously observed that markets were already pricing in high expectations for Iran-linked TACO events. He has also raised concerns about insufficient gold allocation in long-term savings portfolios. These earlier views add context to his current stagflation warning.