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You are correct.

To be honest, I am not a huge fan of hedge funds either. But in this specific case, I'd rather take their advice. In my opinion, for this specific case --discussing inflation trends--, I don't see a lot of room for hedge funds to be partisan? No new legislation, no wrinkles in the system, etc. And they may be wrong, and Krugman may be right after all. Economics, especially Macroeconomics forecasting analysis, should be treated with some reservation. I just find the particular post quite convincing given what I've observed in the last few months.



> I don't see a lot of room for hedge funds to be partisan

They have billions of dollars of bets on where interest rates go. Inflation trends and how they are interpereted are what drives interest rates.

If the fed took on board this particular interpretation at the next meeting Bridgewater would make low double digit billions on those trades.

Doesnt make them right or wrong, but anytime you see a talking head on cnbc or putting out a research note - they are talking up their positions.




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