How To Understand The Impact Of Fiscal Policy Regime Change

source: Upside Down Markets

22 Lessons Learned Upside Down Markets: Profits, Inflation and Equity Valuation in Fiscal Policy Regimes

1. Corporate Investment isn’t Lower. Intangible Investments are Replacing Tangible Ones.

Lesson Learned

2. Covid-19 Did not Impair Capital it Lowered Utilization

Lesson Learned

3 Causes of Growth Declines

Lesson Learned

4. Consequences of Intervention

Lesson Learned

5. Fiscal Income Targeting

Lesson Learned

6. Types of Keynesian Inflation

Lesson Learned

7. The Baumol Effect

Lesson Learned

8. Natural Scarcity Drives Rising Real Estate Prices

Lesson Learned

9. The Invisible Fist Imposes Spending Discipline

Lesson Learned

10. Governments Are Not Constrained by the Invisible Fist

Lesson Learned

11. Stock versus Flow

Lesson Learned

12. Interest Rates Are a Tool Governments Use to Manage the Level of Economic Activity in their Economies

Lesson Learned

13. Money Supply Increases From Asset Purchases Are Not Always Inflationary

Lesson Learned

14. Fiscal Policy Sparked the COVID-19 Stock Market Rally

Lesson Learned

15. Estimating Fiscal Constraints

Lesson Learned

16. Money is not the Ultimate Source of Spending Power

Lesson Learned

17. Pandemic Related Stimulus is Unlikely to Induce Inflation

Lesson Learned

18. Even If the Stimulus is Spent Initially

Lesson Learned

19. Fiscal Spending Leads to Rising Prices for Equities

Lesson Learned

20. Valuation Doesn’t Matter

Lesson Learned

21. Until It Does

Lesson Learned

22. Valuations Will Remain Elevated as Long as Positive Psychology Remains Intact

Lesson Learned

Thank you for Reading

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