• Post category:News

Where Are We Headed: Inflation, Asset Markets, Currencies, Commodities & Precious Metals.

Assets markets are crumbling globally, squarely led by a skyrocketing US Dollar and the US Federal Reserve seemingly morphed into a highly hawkish institution. This is having a negative effect on precious metals (as it always has done, historically) as a result of the first innings of a stock market rout.

But something more important is happening here. The elephant in the room is ostensibly the scale of global debt and the availability of liquidity on a global basis is drying up at an alarming rate. This is the fastest contraction in modern history.

This is further compounded by China having moved into a new and extended period of Covid economic lockdowns, which have negatively affected the global commodity markets and constrained worldwide (supply-side) logistics chains yet again. This is all set against a backdrop of poor economic data and forward looking surveys pointing to a significant global recession.

The world is moving towards a ‘depression’ at a speed of knots, but our analysis is clearly suggesting that we will see yet another change of direction in global monetary policy; reverting back towards aggressive monetary expansion which has already commenced in China. This, we suspect, will be the final change that we have been expecting, and that will lead us from the end of 2022 into the beginning of 2025. The purpose of this report is to help guide our clients how to invest and what metrics one should be looking at moving forwards from here on.