Investors haven't grasped inflation is dead ahead, Mark Zandi warns

Gold last traded at $1,717 an ounce. Silver at $26.00 an ounce.

NEWS SUMMARY: Precious metal prices rebounded sharply Tuesday on bargain-hunting and a weaker dollar. U.S. stocks rose as investors focused on buying beaten-up technology shares.

CNBC--"Moody's Analytics Mark Zandi believes Wall Street is significantly underestimating the seriousness of an inflation comeback, and he warns it will affect every corner of the market - from big tech to cyclical trades.

'Inflationary pressures will develop very quickly,' the firm's chief economist told CNBC's 'Trading Nation' on Friday. 'I don't think there's any shelter here.'....

Zandi contends the market is too sanguine about rising interest rates. He sees inflation 'dead ahead.'...'We've got the pandemic winding down, a boatload of fiscal support coming and we've got a lot of folks who have pent up demand and a lot of savings that they're going to unleash,' Zandi noted. 'Growth is going to be very, very strong - lots of jobs, falling unemployment [and] wage growth.'

As a consequence, he warns investors will have to get accustomed to wild market swings that last longer than two weeks. According to Zandi, not even stocks tied to the economic recovery will offer investors a safe haven.

'These are broad, macroeconomic forces that are going to affect all parts of the market equally,' said Zandi. His forecast calls for a sideways market for one to three years with bursts of volatility due to frothiness amid rising rates."