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Deflation Or Inflation?
The Economist remains undefeated in its ability to top tick market trends! image Last month the Economist published this cover. From this date, 2 year Treasury yield has fallen from 5% to 3.7% today. chart The cause of so much deflationary angst is the meltdown in US (and now European banks). Collapsing regional bank shares in 2007, Covid and now are all seen as a deflationary signal. chart Add to this a collapsing banks share prices, and an oil price in 70s, you have a perfect deflation set up. chart However I think China has really changed the game here. To see how much China has changed the game, look at ... (full story)