In the first five months of 2012, there were twenty times as many Google searches on “inflation” as there were on “deflation.” This is down from a ratio of fifty times in June 2008. If any theme has been overdone over the past six years, it is the theme of inevitable inflation if not hyperinflation. [...]
Research & Commentary
Many sophisticated institutional investors are in a camp that believes the Fed is behind the curve and if they don’t raise rates soon we will have a high probability of entering a period of either bad inflation, or possibly even hyper-inflation. Other camps are supportive of the Fed’s policies in varying degrees. The example used [...]
We, at Comstock, believe as the Fed tightens by ending Quantitative Easing 3 (QE-3) this month, and plans on raising rates next year, that the stock market will not do well and may wind up crashing. Logic tells us that the Fed’s reduction in interest rates, and three QE programs of buying Treasury Bonds and [...]
Despite the Fed’s leverage and its attempt to inflate throughout the economy, the deflationary pressures in the U.S. are overwhelming. Watch this six-minute clip from Steve Hochberg’s presentation at the Orlando Money Show.
Is the market rally since the low of November 16th signaling better times ahead? We don’t think so. It seems to us that Wall Street is automatically assuming that the fiscal cliff will be settled by year-end, that the economy will subsequently recover at a stronger pace and that the market is significantly undervalued. We [...]
Inflation in the U.S. has historically been a wartime phenomenon, including not only shooting wars but also the Cold War and the War on Poverty. That’s when the federal government vastly overspends its income on top of a robust private economy—obviously not the case today when government stimulus isn’t even offsetting private sector weakness. Deflation [...]