Sitting on an Inflation Powderkeg

Yves has an update to his recent posts:

Sitting on an Inflation Powder Keg

Voices of hyperinflation have been quieted down. We have agreed with participants on the matter but not on their timing.The economy has shown more resiliency than economists expected. We have been and remain bullish.

As fear dissipates, we are sitting on an inflation powder keg! Massive amounts of liquidity will move back to real assets in due time. It has been a slower process because there is a lot of fear out there.

We think that we are now nearing this inflection point and it is quite exciting. Our advisory services already look to score nicely for the first half as we have been mostly long stock indices only.

It has been brutal for many markets. Money managers have unwinded bets on the conviction of a slowing global economy.

We think the second half provides hope of picking up great plays to finish up the year strongly.

Already amongst the back drop of a slower macro economic picture bonds should have rallied. They have not and the drop took players by surprise.

It is further proof that we are turning the page. As our forecasts are right on, we have growing confidence in our outlook of a better coming future.

A massive liquidity wave is coming. We feel that it is going to be exciting. Participants are unprepared !

Yves Lamoureux http://lamoureuxandco.com/

Comments

[cobran]

Yves is bullish on inflation and bearish on gold. I guess he confirms Armstrong's view that gold is a hedge against government instability rather than inflation. Having said that, Armstrong is long term bullish on gold due to the sovereign crisis he expects to materialize in a couple of years.

I could ask what Prechter's view on gold are but I suspect that they haven't changed since the metal made a low in 1999!

[Yves]

My view was of a large pause/correction in gold. I am very bullish on gold and think we are nearing the end of this large wave. The problem appears to be on the length of the cycle. In my opinion it is way much longer than public opinion has it.

I did expect a correction in time/price of the decade's leg up. So this pullback fits the bill in both respect and importantly in time.

Yves