Deflation could soon hit the US as real estate and stock prices are at risk of crashing, economist says
By Jennifer Sor, Business Insider
Disinflation could soon turn to deflation in the US, partly due to the risk of crashing stocks and real estate prices, according to Wermuth Asset Management.
Already, commercial property values are under pressure, while a potentially overvalued stock market could face a swift correction if conditions sour. A plunge in the price of these assets would go a long way in sparking deflation, the firm argues.