Although there is no certainty yet that inflation is coming, many warning signs are already clearly visible.
Here are three of them:
FIRST SIGN: On August 27, Jay Powell, Chairman of the US central bank, gave a much-anticipated virtual speech at the annual Jackson Hole monetary policy meeting to talk about the central bank's new inflation target.
Here is star analyst Luke Gromen's summary of the speech:
“There is too much debt in the US & globally. It’s hurting growth.
This can be resolved [in] 1 of 2 ways:
- Widespread defaults (including on sovereign debt).
- Inflate it away.
Today we are accelerating Option #2.”
SECOND SIGN: Many commodities, along with the precious metals markets, have seen their prices reach new heights.
As you can see in the chart below, the price of lumber 🌳 recently soared to levels never before seen in history.
This next chart shows how iron ore 🚄, the raw steel material, has increased and now trades at its highest price in six years…
THIRD SIGN: As mentioned in our SPOTLIGHT #28, Warren Buffet, the ultimate "inside investor" himself, has started purchasing gold-producing assets.
As we've said, we can't be sure yet that inflation is coming (yes, this is a Jon Snow reference 😎), but the signs are starting to point this way.
And what is universally known as a hedge against inflation, you say?
