Inflation is ROARING.
Five year breakevens, which is a key inflation measure, just hit a
new all-time high of 3.0% (started in 2002). Inflation expectations running out
to five years are now higher than at any point in the last ~20 years.
Unfortunately, that’s not even the end of the bad news. The
10-year breakeven rate (inflation expectations 10 years out) hit 2.7044% this
week.
This is noteworthy first and foremost in that it is higher than
the previous peaks experienced in 2011, 2012, and 2013. Indeed, the last time
10-year breakevens hit 2.7% was in 2006.
At that time the Fed was actively hiking rates: Fed Funds rates
were 4.75%, on their way to 5.25%.
Today, Fed funds rates are at zero and the Fed is running a $120
billion Quantitative Easing (QE) program: the single largest monthly QE program
in the Fed’s history. Even more incredibly, the Fed has been staging a public
debate as to whether it needs to taper this program… for months.
Put simply, there is NO signal that the Fed is going to stop
inflation from roaring.
With that in
mind, I outline five investments that could explode higher as inflation rips
through the financial system in a Special Investment Report titled Survive
the Inflationary Storm.
To pick up a free copy, swing by
https://phoenixcapitalmarketing.com/inflationstorm.html
Best Regards
Source: https://gainspainscapital.com/2021/10/28/the-fed-is-waaaay-behind-the-curve-on-infaltion/
