Month: May 2018

May

2018

The Fed is fast approaching its worst nightmare.

Stag-flation.

Stagflation is when inflation is rising at the same time that the economy is weakening, if not contracting.

The Fed has always argued that low levels of inflation (2%) were acceptable provided the economy was also growing. Indeed, this is the very gimmick the Fed has utilized to mask the fact that quality of life has been falling in the US since the early ‘70s (by understating inflation, the Fed has overstated economic/ income growth).

All of the negative effects of inflation (wealth inequality, higher costs of living, increased debt required to maintain living standards) are “masked” by the Fed’s argument, “look how well the economy is doing! If we weren’t running things everything would be much worse. A little inflation isn’t a bad thing after all!”

Not with stagflation.

With stagflation you’ve got the economy shrinking, meaning people are losing their jobs and incomes are falling at the SAME time that the cost of living is exploding higher and thing are getting more expensive.

Cue yesterday’s Fed FOMC statement in which the Fed REMOVED its claim that the “economy outlook has strengthened.”

So the Fed has noticed that the economy is slowing and no longer has a great outlook. And this is happening at a time when the Fed’s official inflation measure, the CPI, is clocking in at 2.36% year over year (which incidentally the Fed is trying to ignore).

Put simply: stagflation is here.

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

We are making just 100 copies available to the public.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

May

2018

The single biggest issue… the one that 99% of investors continue to ignore when it comes to investing or making forecasts… is the fact that Central Bank rigged the entire financial system post-2009.

They did this by cornering the sovereign bond market.

Because sovereign bonds are the bedrock of the current fiat, debt-based financial system (the risk-free rate of return against which all risk is valued), when Central Banks did this, they literally created a bubble in Everything.

This is truly The Everything Bubble.

This has NEVER happened before. Never in the history of mankind have we had every major Central Bank rigging the entire financial system together.

As a result of this, it truly is “different this time” and not in a good way.

With that in mind, if you’re looking to successfully navigate the markets, you need to concentrate on what the bond market is doing.

Bonds have been the primary focal point of Central Banks, as such what bonds do provides us with insights into what Central Banks are doing and by extension what other asset classes will be doing going forward.

On that note, the bond market is currently predicting a massive inflationary development.

Perhaps the single best metric for measuring inflation vs. deflation for the bond market is the TIPs vs. 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 financial system.

We are literally at the beginning of a MAJOR change. Those who get in early on this trend will generate literal fortunes from the right positioning.