You don't understand markets if you think a 2nd wave of INFLATION like the 1970s is coming Here's what everyone sharing this chart misses: The 70s second wave was driven by demographics (Baby Boomers) Today's demographics are the exact OPPOSITE (AI Agents) In the 1970s the baby boomers, the largest generational cohort ever, all entered the workforce, bought homes and started families AT THE SAME TIME Demand for everything exploded at once. Homes, cars, dishwashers, food. And supply couldn't respond, because in the 70s building new manufacturing capacity took YEARS Too much demand chasing too little supply for a decade straight. That's why inflation kept coming back in waves and rates had to go to the moon to kill it Today is the complete opposite... The boomers aren't entering the workforce, they're LEAVING it. Labor force participation is declining as the largest cohort in history (finally) retires And the demographic entering the workforce at size? AI agents. Millions of digital workers that don't buy homes, don't buy cars, don't buy dishwashers and don't eat. They add supply (labour, output, productivity) while adding basically zero demand for goods The 70s formula was demand shock + slow supply. Today's formula is demand fade + instant supply. You couldn't design a more opposite setup for inflation This is why I've been saying the same thing since 2023 while people called for the second wave every single year: inflation is NOT sticky, and the second wave isn't coming Sure, the price of Oil is holding inflation higher than it should be, but it's not creating another double digit inflation wave. Not even close. Even if we get another rate hike, it won't matter, as the growth from AI and agents far outweighs the restrictions of 25bps This is a big part of why I think we are entering the EVERYTHING bull market and why you should be allocated to the market and not sidelined, regardless of what the doomers will tell you. By the way, if you're unsure how to invest in todays market, you can see my entire real-time portfolio here: Don't forget to give me a follow @kylereidhead for more insights on AI and markets