In this month’s report, we will deliver another “dose of reality,” even as the equity markets are rebounding from this month’s sell-off. But questions abound as to the durability of this or any other rally as we head into headwinds of uncertainty.
Did Fed Chairman, Powell tell us in last week’s speech that they will continue to engage in money printing and keep interest rates artificially low in spite of evidence of rising inflation? We will discuss the ramifications of such a policy in this month’s report.
Is the market beginning to show its hand? Are we beginning to see evidence of inflation after years of disinflation and outright deflation? How is this possible following the worst GDP report in history? We will attempt to make some sense out of it all in this month’s report.
This month we will continue our previous discussion on the tug-of-war between the inflationary policies of the central banks money printing operations and the enormous capital destruction that has been created as a result of the Covid-19 crisis. This is clearly a period of uncertainty and a new chapter for the history books. .