Fisher: Don’t Let Price Paranoia Scare You From the Bull Market

Two-pronged price peril! Western pundits are in a tizzy over prices, fretting over both Chinese deflation and U.S. and European inflation. They fear either may wreck global markets. Maybe both! Their claims: Economic weakness could turn the Middle Kingdom’s summer deflation tussle into a long-term battle, while elevated “core” Western inflation portends higher interest rates longer. Wrong and even more wrong. Inflation and deflation doomsayers read too much into short-term wiggles — ignoring actual price drivers. Here is why price perturbations are poppycock.