Ivy Investments Forum
We recently gathered a number of thought-provoking experts who shared their latest views on an array of critical issues impacting today’s investing landscape. Watch the session replays to get our panelists’ insights.
The United States has been in a deflationary trend for almost 50 years. That may be about to change.
The importation of cheap goods from Japan, and then China, has driven a deceleration in the advance of goods prices. Although we believe we were already on the path of onshoring production of some goods, supply-chain problems amplified by COVID-19, notably personal protection equipment and medicine, have led to a change in tune. Many countries, including the United States, are increasingly looking for ways to onshore production intended for domestic consumption. Moving capacity back home, to a higher-cost labor pool, could finally reverse a long deflationary trend.
Source: US Census, Bureau of Labor Statistics, MacroBond. Dates shown are January 1972 through January 2019. This chart is being provided as a general source of information for education purposes only, and is not intended as a recommendation to purchase, sell or hold any specific security or to engage in any investment strategy.