Friday, November 04, 2016

Paul Singer:
"A Spike In Inflation Could Lead 
To A Market Crash"
"This may seem like a strange thing to worry about under the current circumstances, but the tide toward inflation could turn rather abruptly .. If inflation starts accelerating to an annual rate of high single digits or greater, it will be quite difficult for the mix of strategies that Elliott favors to 'keep up .. The economy and markets are operating in denial of reality .. Every sniffle is being treated by central banks as acute respiratory distress syndrome worthy of 'code-blues' and teams of frantic pumpers and fixers... what this policy landscape has engendered is a widespread belief, or at least a strong suspicion, that stock and bond prices won't ever be allowed to go down in any meaningful way .. This has encouraged massively risky behavior .. Given the market gyrations that have accompanied each of the Fed's previous attempts at hiking policy rates over the last few years, now would seem to be an inopportune time to abandon the only actual safe haven [gold] that investors may reach for as an alternative to the really bad deal offered by fixed income instruments given current pricing."
LINK HERE to the article

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