When Lower Inflation Hurts
In this episode of the Dividend Cafe, host David Bonson examines the current U.S. economic landscape, focusing on the paradox of disinflation that may arrive in 2026 but could be economically painful. He breaks down recent data—including a weaker-than-expected GDP report, stable inflation expectations from Treasury yields, and the impact of rent price dynamics—while warning that lower inflation may stem from stagnant growth rather than genuine price relief. Bonson also critiques the limited scope of capital expenditures, noting that reliance on data‑center investment mirrors past over‑reliance on fracking and underscores the need for broader productivity gains. Finally, he highlights labor market concerns, suggesting that a prolonged hiring freeze could lead to higher unemployment and further disinflationary pressure.
AI Productivity and Bounced Checks
In this episode of the Dividend Cafe, host David Bonson examines the promise and pitfalls of AI-driven productivity, contrasting the hype with hard data on actual output gains. He outlines nine vulnerabilities in the AI investment narrative, emphasizing that most...