Active funds remain a small slice of the industry, and their assets make up just 3.4% of the overall ETF market. But that’s up from 2.7% a year ago.
Bond yields would normally rise quickly in face of such compelling inflation signals, but it's increasingly hard to know what fighting the Fed means.
According to Goldman Sachs, if inflation stays relatively muted, stocks will do well. If the CPI takes off, though, returns will be mediocre at best.
“Shrinking money supply as a result of the withdrawal of the central bank would be very bad for the market, so I think we need to watch carefully."