As the potential for a rail strike heats up, there is also the nurses’ strike in Minnesota and the teachers’ strike in Seattle. We think this is a trend that is here to stay. No longer fearful of getting their job outsourced, flush with money from Covid-19 economic relief, and a tighter labor market, the power seems to have shifted to employees and a reset of wages is inevitable. With inflation running high, this increase in wages will be difficult to pass on and will likely hurt profit margins. Question: is this going to be a not fun version of That 70’s Show – where the stock market can stay flat for 18 years with constant inflation, strikes and nobody is happy?