Nov 9, 2021
Summary:
Ever since the election, the 1970s type of inflation has come into
full swing, and Hoye has observed that the big game in the
financial markets is inflation and financial assets. Hoye has
looked at the history of these financial bubbles and the patterns
that accompany them to determine what we can expect out of the
current circumstances
Highlights:
-Since the election, the 1970s type of inflation has come into
play
-In the financial markets, Hoye has observed that the big game is
inflation and financial assets
-In a history of interest rates, you’ve never had anything trade
negative on a nominal basis
-People are saying tangible assets are going forward, but Hoye
thinks this is improbable
-Following every great financial bubble, there is a pattern
-The fed was unaware in the dangers of the great financial
bubble—once it’s over, most prices have deflated
-The rise in commodity prices is associated with the increase in
business activity you get at the final stages of a business
mania
-Rising real rates will be part of the post-bubble world
-Copper is declining, gold’s real prices is declining, interest
rates are declining, and the dollar is prepared to rally
-These items are doing what they’ve done at the climax of previous
bubbles
Useful Links:
Financial Survival Network
Charts and Markets