Inflation will be the theme of 2018

Everything’s going to inflate this year, says this pundit.  Stock market is to continue to rise, as the dollar continues to fall.  The government is going to make sure the dollar stays weak.  Yields between long and short are converging.  The yield curve is flattening out.  These trends are not going to stop (yet).

The Fed is not meaningfully raising rates, just 25 basis points to the short end.  The Dow is going to hit 30,000 and the distortion is going to get worse, before the correction comes.

But rest assured.  A correction will come.

The Fed is trying to reinflate a bubble in housing, reinflate a bubble in the stock market.  The debt bubble and the deficit are going to get worse.

The pundit asks why would you stay in the stock market until the correction moment?

He doesn’t know when the moment will be, but what can people do to protect themselves for when the moment comes?

Everything is pointing to inflation – commodities, stocks, real estate right up until the moment the correction hits.  Only Central banks are buying bonds.  Paying 2.5% p.a. for ten years as well as 30 years, more or less the same.  This is an opportunity to buy real assets that will hold value when we hit that wall.

Cryptocurrencies are a way out of the paper currency game (fraught with new risks).  Countries are trading oil in other currencies like the Yuan.  Too many dollars will be flooding in.  Result – inflation.

Will confiscation in Trump’s executive order be applied to assets?

People’s purchasing power is being confiscated right now by inflation.  Worry about the theft being committed right now.

Analyst/trader Gregory Mannarino says, “The deficits and debt are going to explode higher. World central banks are going to inflate. They are going to kill their currencies. This is why you have been seeing the rise in crypto currencies. Everywhere you want to look, the arrows are pointing towards inflation. Be your own central bank, and bet against the debt and own real stuff.” Join Greg Hunter as he goes One-on-One with Gregory Mannarino of TradersChoice.net.

 

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