-- Published: Monday, 6 November 2017 | Print | Disqus
By Graham Summers
Something truly massive happened in early 2017.
That “something” was the market shifted from deflation towards an inflationary outlook.
If you don’t believe me, you can see for yourself.
Inflation expectations broke out of a multi-year downtrend. Not only that, but they have since continued higher, bouncing of support.
Investing in the markets is like playing poker, and this was a massive “tell” that the market had changed.
The next big “tell” came when yields on the 10-Year Treasury broke out of a downtrend.
As I explain in my best-selling book The Everything Bubble: The Endgame For Central Bank Policy, the entire political/financial structure of the last 40 years on a bull market in bonds. Put another way, because it has gotten continuously cheaper for the US to issue debt since 1983, the political class has been able to ramp up debt issuance.
And therein lies the problem: bonds trade based on inflation expectations among other things. So to see yields rising like this, breaking a multi-year downtrend, "tells" us that the bond market is adjusting to the future threat of inflation.
Put simply, we are getting numerous signs that the markets are shifting into a new major trend. And when I saw “major” I mean MAJOR.
Put simply, BIG INFLATION is THE BIG MONEY trend today. And smart investors will use it to generate literal fortunes.
Imagine if you'd prepared your portfolio for a collapse in Tech Stocks in 2000... or a collapse in banks in 2008? Imagine just how much money you could have made with the right investments.
THAT is the kind of potential we have today. And if you're not already taking steps to prepare for this, it's time to get a move on.
Chief Market Strategist
Phoenix Capital Research
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-- Published: Monday, 6 November 2017 | E-Mail | Print | Source: GoldSeek.com