Biggest Trend of 2018, How to Profit From It
By Graham Summers / GoldSeek
June of 2017 marked the date at which the inflation genie was let out of the bottle.
That was the month that:
- Fed Chair Janet Yellen began the process through which the Fed publicly admitted that it has no clue about how inflation really works.
- The Bank of Japan (BoJ) announced it would continue its massive QE program despite clear evidence Japan’s economy was out of trouble.
- The European Central Bank (ECB) affirmed it would continue its own massive QE program despite clear evidence that the EU economy was stable.
Put simply, in June 2017, the most important Central Bank in the world gave up any pretense that it understands inflation… right around the same time that the second and third most important Central Banks announce they would continue emergency levels of monetary easing despite the fact their respective economies were stable and growing.
The markets “took the hint.” From July 2017 onwards, commodities (which usually rally hard during periods of higher inflation) outperformed the S&P 500 by a wide margin (with a brief exception in early December).
H/T Bill King
Put simply, starting in June of 2017, the markets began to adjust to the fact that BIG inflation was on the rise.
Why does this matter?
As I explain in my bestselling book The Everything Bubble: the Endgame For Central Bank Policy, US sovereign bonds (also called Treasuries) trade based on inflation expectations.
Put simply, when inflation spikes higher, so do Treasury bond yields.
When bond yields rise, bond prices fall.
When bond prices fall, the Bond Bubble bursts.
When the Bond Bubble bursts, the EVERYTHING bubble follows.
Well, guess what? The yield on 10-Year US Treasuries is spiking, having broken above its 20-year trendline.
What’s coming will take time for this to unfold, but as I recently told clients, we’re currently in “late 2007″ for the coming crisis. The time to prepare for this is NOW before the carnage hits.
Best Regards
Graham Summers
Chief Market Strategist
http://news.goldseek.com/GoldSeek/1514904126.php
Read more great articles here: http://goldseek.com
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).
It is illegal to hunt camels in the state of Arizona.