The Wall Street Journal reports that investors believe that recent spikes in inflation—which is evidenced by increased prices in everything from used cars to homes to basic goods—will subside in the coming years. The rise and speed at which inflation has risen has exceeded economists’ expectations drawing worry among market practitioners. However, the WSJ reports that recent market trends are boosting investor outlook, driven by the belief that price pressures will ease significantly, and that current labor shortages and supply-chain disruptions will stabilize. As the economy continues to improve, many economists on the other hand are warning against market complacency as the Delta variant spreads which could create further disruptions.

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