Risk of “Deflation” Is High: Key Inflation Indicators At Support That That Could Break At Anytime And It Will Surprise The Majority!
April 27th, 2013
In 2007, when stocks (S&P 500) and commodities(CRX Index/Copper) were peaking there was little talk about deflation from the media (inset chart point 1), around the globe. Results going forward…The majority was surprisedas S&P 500 fell 50% and Commodities fell further.
In 2009, after a large decline in stocks and commodities the talk of deflation was very high (inset chart point 2). Results going forward….The majority was surprised as the S&P 500 and Commodities rallied over 100% in the upcoming few years.
Present times….Since May of 2011, the broad based Commodities index (CRX) and Copper have declined over 25% each. Wouldn’t you expect with these type of declines in these commodities and in the Gold & Silver complex the talk of deflation would be picking up? IT’S NOT!!!