Blain’s Morning Porridge/Bill Blain/5-9-2023
Gold, silver and stocks performance 1970s
Chart courtesy of TradingView.com • • • Click to enlarge
“Yesterday, I noted a number of banks quietly rowing back expectations Central Banks are about to start reversing the recent run of rate hikes – putting cuts back to 2024. Macro hedge funds are shorting rate cuts. What do they know that we don’t? They’ve got a view on sticky inflation and how central banks will respond.”
USAGOLD note: Blain takes a deep dive into the complexities of deflation and stagflation and says stagflation “looks nailed on.” Deflation, he says, belongs in “the same bucket” of misplaced hopes with transitory inflation. For those who would like to know how gold, silver, and stocks performed during the last episode of stagflation, we refer you to the chart above.