Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber warned on Friday that the inflation trough for the current cycle has already passed, arguing that prices are now headed higher as tariffs and war push living costs up. His view echoes hard to be optimistic about markets when inflation is still acting as a brake on both stocks and bonds.
In the X post, Gerber wrote that the cost of living is climbing quickly, pointing to two forces he called “wildly inflationary”: tariffs and war. He also argued that, once inflation momentum builds, reversing it can be difficult.
That inflation-first framing also connects to his broader market stance that risk appetite is harder to justify when sellers are taking control and the tape looks heavier on the downside. Last month, in another X post referenced in the related commentary, he described the setup as “hard to be bullish at the moment.”
Gerber has also challenged the idea that inflation fears have faded, saying, “Inflation is real and not going away soon.” In that telling, the inflation story isn’t background noise—it’s a day-to-day constraint that can keep rallies from sticking.
He has extended the same argument to portfolio construction, contending inflation “is neither good for stocks or bonds.” If both major asset buckets are pressured at the same time, the usual stock-and-bond diversification playbook can become less reliable.
Are We Prepared For Persistent Price Pressures?
For equities, persistent inflation can force investors to demand more growth to justify valuations, especially when discount rates stay elevated. For bonds, higher inflation can chip away at real returns and lead to higher yields as markets reprice expectations.
Gerber’s cost-of-living focus has shown up in consumer examples, too, including his argument that higher fuel prices can change everyday decisions. He has said operating a gasoline-powered vehicle can run up to “4-5 times more expensive” than driving an electric vehicle.
Those comments came alongside figures he cited for household budgets, including a national average gasoline price of $3.842 per gallon and Brent crude moving above $108 per barrel. Gerber also said switching away from gas could save “thousands of dollars a year” for many drivers.
How Tariffs And War Are Fueling Costs
In Friday’s post, Gerber tied the inflation outlook directly to policy and geopolitics, saying tariffs and war are pushing prices higher and lifting the cost of living. He added that once inflation expectations become embedded, it can be far harder to cool them back down.
He did not point to specific companies or publish numeric forecasts in the post, but the message was clear: inflation is central to how he’s thinking about both markets and day-to-day expenses. The same pressure he sees in household costs is also, in his view, complicating the outlook for diversified investors.
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