Gavin Baker Says Second Inflation Wave 'Hurts Bond Market Much More Than First Wave'

Renowned investor Gavin Baker recently shared his thoughts on the potential of a second inflation wave, drawing parallels with the 1970s and its impact on the bond market. Baker also noted signs of life in commodities for the first time since the “‘supercycle’ silliness last spring/summer.”

What Happened: Baker, Managing Partner and Chief Investment Officer at Atreides Management, tweeted, “What we know from the 1970s is that the second inflation wave hurts the bond market much more than the first wave."

He also noted that commodities are bouncing back for the first time since the “supercycle” silliness last spring/summer.

See Also: Big Short Investor Sees No Recession Evidence, Market Will Continue To Melt Up

Why It Matters: The potential of a second inflation wave could have significant implications for the global economy and financial markets. If Baker’s observations hold true, the bond market could face a significant impact, similar to the 1970s.

The resurgence in commodities also suggests a potential shift in market dynamics. This comes at a time when concerns about inflation are already high, with some experts warning of the potential for inflation to continue to bite.

Read Next: Nvidia Takes The Crown As AI Chip Winner, Intel And AMD Still Have Potential: Analyst

Image by stockwerk-fotodesign on Shutterstock