2026-01-18 12:30:19

Inflation expectations may be overestimated. Senior investors believe that the current market has a bias in its assessment of price trends. Real estate prices continue to soften, and unit labor costs have already turned downward; both traditional engines that drive up prices are faltering. More importantly, technological advances such as AI, robotics, and automation inherently have the characteristics of lowering costs and suppressing prices. What does this mean? In upcoming economic data, the phrase "below expectations" may appear frequently. Even during a strong bull market, this correction in expectations could still put pressure on valuations. In other words, inflation is not as scary as it seems, but the market's excessive worry about it is worth paying attention to.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

16 Likes

Reward
16
7
Repost
Share

Comment

0/400

DegenRecoveryGroup

· 5h ago

Everyone says inflation is scary, but what’s truly frightening is the market’s collective anxiety. The expected difference correction is coming. --- The issue of AI automation reducing costs should have been taken seriously long ago. When housing prices fall, labor costs also drop. A double engine failure, what a mess. --- Will the correction of the expected difference put pressure on valuations? Can this bull market hold up? Feeling a bit timid. --- Will below-expectation become the norm? Fine, let’s just wait to be repeatedly educated. --- Inflation isn’t that scary; the problem is the market has already become panicked. It’s a bit late to bring this up now. --- Real estate and labor costs are falling across the board. How can anyone still be shouting about inflation? Are their eyes even open? --- The logic that technological progress suppresses prices isn’t wrong, but will the market buy into it? That’s the question. --- Another cycle of expectation correction. I just want to know who’s going to get cut again. --- A strong bull market meeting expectation difference correction—this combo is pretty OP. --- In a world where costs are turning downward, people are still hyping inflation concepts. Laugh out loud.

View OriginalReply0

DAOdreamer

· 5h ago

Housing prices fall, costs decrease, AI is still lowering prices... Huh, is inflation really that scary? --- Honestly, the expectation gap can indeed crash valuations, don't be too optimistic. --- So the key isn't inflation, but the market's collective anxiety? Got it. --- I agree with the logic that technological progress reduces costs, but can it really transmit to prices? --- Below expectations frequently appear... this is not good news for holders. --- Haha, just listen to what seasoned investors say, don't treat it as gospel. --- Wait, real estate and labor have both cooled down, why worry about inflation? The logic is a bit messy. --- Expectation revisions have a bigger impact on the bull market than actual inflation, that's the core. --- AI indeed reduces costs, but that's in the future. What about now? --- Inflation isn't that scary; on the contrary, the market's excessive worry is worth paying attention to... Well said.

View OriginalReply0

NoStopLossNut

· 5h ago

Hmm... The logic that AI lowers prices sounds good, but if housing prices and wages fall, how can ordinary people survive? --- Expectation gap correction damages valuation; if this continues, we'll have to cut losses again. --- Does technological progress suppress prices? Then our wages are also being suppressed, it's hard to hold on. --- Wait, is the idea that inflation isn't that scary and we should all in now? --- Below expectations frequently appear... I bet five bucks that next time it will be above expectations, the market just loves to go against it. --- Real estate is losing strength, wages are turning downward, can only rely on AI to rescue the market? This script is really heartbreaking. --- Honestly, inflation isn't that scary, but valuation pressure is high... Isn't this a sign of sideways movement? --- Robots lower costs, capitalists make a killing, are we just waiting to collect unemployment benefits? --- Instead of worrying about inflation, it's better to worry about the crash when expectations shatter. --- Here we go again, every time they say "expectation gap is about to appear," but expectations themselves are a trap.

View OriginalReply0

GhostAddressMiner

· 5h ago

Ah, the inflation narrative is starting to reverse again. That's the market for you... It's been obvious for a while, and on-chain fund flows have already been speaking.

View OriginalReply0

ChainWatcher

· 6h ago

Speaking of which, with falling housing prices and stagnant wages, this combination really leaves little pressure on inflation. AI indeed secretly reduces costs, but the market is still worrying unnecessarily. The correction of expectations might need to happen several times; the bull market is still tough. Inflation is not a big deal; it's just psychological effects acting up. This time, someone finally woke up, feeling like everyone else is drunk while I alone am sober. Instead of fearing inflation, it's better to be cautious of the corrections caused by expectations collapsing. Lowering costs but prices still rising? That's ridiculous; the market logic is starting to stretch thin.

View OriginalReply0

SybilSlayer

· 6h ago

Without two engines, inflation is indeed terrifying. AI is really quietly reducing costs.

View OriginalReply0

LiquidityWitch

· 6h ago

Real estate and labor costs are both turning downward. These two engines have really stalled. The wave of AI automation has indeed driven prices down, but the problem is—market expectation revisions will cut into valuations. Even in a bull market, it can't withstand this.

View OriginalReply0