QuoteIt's hard to believe that the beginning of the "great inflation" of the 2020s is now over five years old. Strong Industrial Equities, Bullish Copper, Energy Volatility, and CapEx spending sprees that look like a teenager with a stolen credit card is just something I have taken for granted, such as when earnings come out I instinctually run to the "spending" portion of the CFO report to see what the hot new trends are "because prices go to the moon and whoever spends, wins!" Yet, in Mid-2020 the narrative was solely on preventing "Japanification", a term economists use for a period of prolonged currency deflation and low real growth. Six years ago our current Macro-Regime would have sounded outlandish, just like today thinking about deflation feels like a joke.
Link: https://robertsresearch.substack.com/p/treasuries-made-easy