Our Take- The Kryptonite for Investors Is Uncertainty: Can we separate the signal from the noise?
With the election in November came a release of “animal spirits” focused on lower taxes and decreased regulation. Not so fast. If we thought the price of eggs was high last summer, the effects of stagflation would truly shock the senses. This note, however, is not a discussion of the merits or demerits of either policy but, instead, a look at how uncertainty weighs heavily on the financial markets and can, itself, dampen growth.