Markets Scream 'Inflation': Are You Listening?
Phoenix Capital Research | Feb 15, 2017 11:49AM ET
I keep pounding the table and screaming about inflation, but people still don’t get it.
Hopefully Tuesday’s inflation data was a wake up call.
For those who missed, US wholesale inflation posted its largest monthly jump in four years yesterday. Core Producer Price Index rose 0.4%; only 0.2% was expected. And Fed Chair Janet Yellen blatantly hinted at another interest-rate hike in March despite clear evidence the US economy is rolling over.
If this doesn’t SCREAM “inflation” to you, nothing will.
The fact is that the Fed realizes it has let the inflation genie out of the bottle. The inflation rate is already well above the Fed’s desired target of 2%, having moved a total of 3% higher in the last 18 months.
Gold and silver have already “figured it out” and are up 6% and 11% thus far year to date.
The potential to see triple-digit gains from inflation hedges is here.
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