While Stocks Soar Towards New Highs, Sophisticated Investors Are Already Prepping for the Next, Bigger Collapse
by Phoenix Capital Research
The US Government and the US Federal Reserve downplay the threat of inflation. There are two primary reasons for this:
1. Acknowledging higher inflation would mean both revising GDP growth much lower (last quarter’s FDP growth would have been negative 1% if you accounted for the real increase in costs of living).
2. One of the primary arguments the Fed uses for why it can print hundreds of billions of Dollars without hurting consumers it because inflation remains “contained” or “transitory.”
Because of this, you won’t see any real acknowledgement of inflation by the US Government or the Fed until it’s far too late. Remember, one of the central goals for these organizations is to maintain confidence in the system.
Indeed, while the mainstream financial media continues to trumpet the wonders of stocks closing in on all-time highs, larger, more sophisticated players are preparing for a financial meltdown in a much larger market: bonds.
The cause? Inflation…