In light of today's Jackson Hole announcement by Jerome Powell about the Fed's new approach to targeting inflation, let's talk about INFLATION!!!

After 15 years in the financial industry, I still can't believe how many investors misinterpret inflation. But it's not their fault bc we're conditioned by the Fed to think about it the wrong way.

And there's a reason the Fed wants you to believe their inflation narrative, which I will explain in this thread.

But first let's erase everything we've been conditioned about inflation and start over with a very basic, fundamental relationship:

INFLATION = GROWTH

Secondly, let's make sure that we are talking about the right kind of inflation, since inflation comes in different flavors.

When you go to the grocery and notice that certain things are going up in price, that's most likely bc of some disruption in supply.