Two Charts That Argue Inflation, NOT Deflation, is Now the Dominant Trend
Economics / Inflation May 02, 2018 - 11:17 AM GMTThe markets are moving into their first MAJOR inflationary shift in TEN years.
Perhaps the single best metric for measuring inflation vs. deflation in the bond markets is the TIPs to Long US Treasury ratio. In its simplest rendering when this ratio rises, it means inflation is on the rise. When it falls it means deflation is dominating the bond markets.
As you can see in the chart below, this ratio has just broken out of a 10-year deflationary downtrend. This is the FIRST confirmed breakout since the 2008 Crisis. And it signals a tectonic shift towards inflation is underway in the bond markets.
We are seeing a similar breakout in the velocity of money, which measures the speed at which money travels throughout the financial system. Here again we are seeing our first upwards breakout of a previous downtrend in ten years.
Take note, both the BOND MARKETS and the VELOCITY OF MONEY are screaming that the financial system has made a 1 in 10 years shift.
This is THE BIG MONEY trend today. Already the financial system is showing signs of it. And smart investors will use it to generate literal fortunes.
We just published a Special Investment Report concerning a FIVE secret investments you can use to make inflation pay you as it rips through the financial system in the months ahead
The report is titled Survive the Inflationary Storm
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Graham Summers
Phoenix Capital Research
http://www.phoenixcapitalmarketing.com
Graham also writes Private Wealth Advisory, a monthly investment advisory focusing on the most lucrative investment opportunities the financial markets have to offer. Graham understands the big picture from both a macro-economic and capital in/outflow perspective. He translates his understanding into finding trends and unde74rvalued investment opportunities months before the markets catch on: the Private Wealth Advisory portfolio has outperformed the S&P 500 three of the last five years, including a 7% return in 2008 vs. a 37% loss for the S&P 500.
Previously, Graham worked as a Senior Financial Analyst covering global markets for several investment firms in the Mid-Atlantic region. He’s lived and performed research in Europe, Asia, the Middle East, and the United States.
© 2018 Copyright Graham Summers - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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