If you’re looking for signs of inflation the CPI will never show it.

Why?

Because CPI is constructed on purpose to understate inflation.

The Fed knows the CPI is garbage, which is why it (the Fed) has multiple other inflation measures. And by the way, ALL of them show inflation is already OVER 3%.

The NY Fed’s Underlying inflation gauge or UIG hit 3% in January, while the Cleveland Fed’s “Sticky Inflation” measure rose 3.7% in January.

This is a HUGE deal for the financial system.

Why?

US Treasury yields trade based on inflation (among other things).

When inflation rises, Treasury yields rise to accommodate for this.

When Treasury yields rise, Treasury prices FALL.

When Treasury prices FALL, the Everything Bubble begins to burst.

Well guess what? Treasury yields are SOARING having broken a 20 year downtrend.

Put simply, this chart is telling us BIG inflation is on the way. The Everything Bubble is on borrowed time unless the Fed acts soon.

The time to prepare your portfolio is NOW before things really get ugly.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s in terms of Fed Policy when The Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research