Sunday , January 23 2022
Home / Video / TSS S11 E13: Dr. Ed Yardeni on Profits, Productivity and the Pragmatic Powell Pivot

TSS S11 E13: Dr. Ed Yardeni on Profits, Productivity and the Pragmatic Powell Pivot

Summary:
Dr. Ed Yardeni, economist and President of Yardeni Research, discusses his new book “In Praise of Profits,” the pivot by Jerome Powell from healing unemployment to fighting inflation, his near-term outlooks on economic growth and inflation (28:52), his bullish case for U.S. equities (38:43) and his longer-term view on why the 2020s could become a decade of prosperity-creating advances in business productivity. “Productivity really is the source of prosperity,” Dr. Yardeni tells cohosts Jeffrey Sherman and Samuel Lau (13:42). “Productivity allows for wages to rise faster than prices. It allows for profit margins to stay high. And that’s what we want to root for. We want to give entrepreneurs the incentive to provide us with goods and services based on more and more productivity, which then

Topics:
Dr. Ed Yardeni considers the following as important:

This could be interesting, too:

Lambert Strether writes 2:00PM Water Cooler 1/21/2022

Yves Smith writes Headstrong Girls and Dependent Boys: Gender Differences in the Labour Market Returns to Child Behaviour

Lambert Strether writes Links 1/21/2022

Nick Corbishley writes Opposition Rises to NHS Vaccine Mandate, As Justifications for Mandate Run Out of Logic

Dr. Ed Yardeni, economist and President of Yardeni Research, discusses his new book “In Praise of Profits,” the pivot by Jerome Powell from healing unemployment to fighting inflation, his near-term outlooks on economic growth and inflation (28:52), his bullish case for U.S. equities (38:43) and his longer-term view on why the 2020s could become a decade of prosperity-creating advances in business productivity. “Productivity really is the source of prosperity,” Dr. Yardeni tells cohosts Jeffrey Sherman and Samuel Lau (13:42). “Productivity allows for wages to rise faster than prices. It allows for profit margins to stay high. And that’s what we want to root for. We want to give entrepreneurs the incentive to provide us with goods and services based on more and more productivity, which then allows them to pay their workers more – in real terms. It does nobody any good to see wages go up and then prices go up just as much.”



Contrary to the view of some that recent shortages of goods have been due to a breakdown of America’s supply chain, Dr. Yardeni’s analysis of the data says the problem stems from government fiscal overreaction to the COVID-19 pandemic in the form of excessive stimulus checks, combined with ultra-accommodative monetary policy by the Federal Reserve. That combination created excessive demand (11:36). The third round of stimulus checks by the federal government, he says, “was really what created this demand shock that in turn overwhelmed the supply system. So the supply disruption just didn’t occur out of nowhere. The system was just overwhelmed. As a matter of fact, if we look at 12-month average of West Coast port traffic, … it’s at an all-time record high.” This episode of The Sherman Show was recorded on Nov. 30, 2021.



• This material contains the opinions of the manager as of the date it was recorded and such opinions are subject to change without notice.



• The material represents DoubleLine’s intellectual property. No portion of this presentation may be published, reproduced, transmitted, or rebroadcast in any media in any form without the express written permission of DoubleLine. To receive permission from DoubleLine, please contact [email protected]



• The views and forecasts expressed in any materials on this website are as of the date indicated, are subject to change without notice, may not come to pass and do not represent a recommendation or offer of any particular security, strategy, or investment. DoubleLine has no obligation to provide revised assessments in the event of changed circumstances. There can be no assurance that the strategies described will achieve their objectives and goals.



• DoubleLine® is a registered trademark of DoubleLine Capital LP.



• ©2021 DoubleLine
Dr. Ed Yardeni
Dr. Ed Yardeni is the President and Chief Investment Strategist of Yardeni Research, Inc., a provider of independent investment strategy and economics research for institutional investors. In this blog, we highlight some of the more interesting relationships and developments that should be of interest to investors. Our premium research service is designed for institutional investors.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.