Inflation is undergoing a ‘structural shift’ and these markets will benefit, strategist says

Inflation is undergoing a ‘structural shift’ and these markets will benefit, strategist says

European stocks are set to outperform the U.S. as inflation sticks around and commodities begin a new "supercycle," according to Livermore Partners Chief Investment Officer David Neuhauser. The in May from the previous year, its sharpest increase since 2008. Core inflation, which excludes volatile food and energy prices, also notched a 28-year high of 3.8%. While the current red-hot inflation figures as transitory and fueled by short-term anomalous factors, Neuhauser argued that a more fundamental "structural shift" was taking place.  Livermore Partners has noted that wages are not rising as much as would normally be expected alongside GDP growth rates upward of 6%. Real average hourly earnings in the U.S., which account for inflation, were down 2.8% in May from the previous year, according to the . "As you are seeing prices for automobiles, as prices for houses, as prices for food and energy go up, even though it looks like the economies are starting to boom, the real issue is you're not seeing wages grow as fast," Neuhauser told CNBC's "Squawk Box Europe" on Friday. "Thus ultimately that is going to start to pinch the consumer and as you know, the consumer is 70%-plus of the economy." If