On the heels of Goldman's Thematic Trader Louis Miller's introduction of the 1970s basket, Goldman's head of hedge fund coverage, Tony Pasquariello, reaffirms his belief that "the reflation trade lives on," and after what he calls "a high octane couple of days in the markets", he lays out the framework for the next phase of the game:
1. one should call CPI what it was: ugly and complicated.
While you can point to a few specific excesses that are more quirky than intimidating - e.g. private transportation - the release was conclusive in this sense: the tidy trend of disinflation has been disrupted and the “last mile” question isn’t going away.
