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Strategies & Market Trends : Zman Market Timing -- Ignore unavailable to you. Want to Upgrade?


To: Paxb2u who wrote (464)10/25/2013 10:45:00 AM
From: zman691 Recommendation

Recommended By
Paxb2u

  Read Replies (1) | Respond to of 15903
 
Yes and Yes ;) ... There is are strong underlying deflationary forces in play due to K-Wave Winter, but the world's Central Bankers are fighting against this. The Central Bank actions have the affect of pushing asset prices up and creating speculative bubbles, but unless/until wages begin to inflate any speculative bouts of commodity price inflation are unsustainable because they act as a drag on spending... In other words we can't escape K-Wave Winter until we start to see wage inflation. But in the meantime those stuffing cash into the mattress are earning negative real interest rates and are missing on on the potential speculative bubble gains. Not to mention that once wages turn the corner then inflation will kick into gear making losses on cash worse.