Its easy to see how this happened when you change the rules of the game. You have super low interest rates for years. You have the FED pumping in trillions. You have Trump cutting taxes on corporations. You have the government giving out free money. So essentially, every single demographic of society is getting something. (except the savers I guess). Nobody could have imagined this. So the predictions I think made sense, but it was based on how the world used to work. If you change just one thing, the results would have more than likely been different, but in truth, there are several major parameters that have been "tweaked".
Oh, they're getting "something"... THE SHAFT! And with the, "yeah, but there's no inflation" price increases, it's hurting many. More to come, sadly.
I think the Tech options whales are swimming up again. Gaming for Q1 earning at later this month. And the imbalance of US vs Europe vaccine roll-out saves the dollar and bonds for this time being. Reflation trade is at a pause now..... For how long?
There is definitely inflation. My cost of living has been going up like everyone elses. But its only like 3% a year. Which does compound up over the decades. About 80% since 2000. Which is really bad if your wages haven't kept up and you don't own your own home. But compared to the Stock Market and House prices. Zirp and money printing. I would have expected inflation to be a lot higher.
I look at my grocery bill between now and 2000. And my utility bills. And the cost of buying say a new car. Since 2000 these have gone up around 50 to 100% for me, which is 2 to 4% per year compounded. Im not see 200% inflation in my overall cost of living, although the odd thing may have gone up by that much. Now i don't rent so i can comment on how much rent has gone up. This doesnt mean we wont see really high inflation over the next 10 or 20 years.