Tag Archives: Deflation

Surprise drop in euro zone inflation shows deflation risk

Euro zoneĀ inflation fell in December after a small increase the previous month, increasing the European Central Bank’s challenge of avoiding deflation as well as supporting the bloc’s recovery. Consumer price inflation in the 17 countries then sharing the euro stood … Continue reading

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Producer prices fall for third straight month in November

U.S. producer prices fell for a third straight month in November, pointing to a lack of inflation that could give the Federal Reserve pause as it weighs the future of its monthly bond purchases. The Labor Department said on Friday … Continue reading

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Inflation, Deflation and Wealth Protection – Part One

What is inflation? Inflation is one of the most commonly misunderstood phenomenon in the world today – even by so called professionals. I worked in the investment banking industry for fifteen years. I would bet the percentage of these people … Continue reading

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Paulo Pereira: Global market Musings: Volatility And The “Backstop”

Ultimately what I’m saying here boils down to this: unceasing market intervention has crushed the forward-looking expected returns for pretty much every asset class out there: rates, credit, HY, equities, equity with overlay/protection strategies (calls too cheap), long/short, macro, relative … Continue reading

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Time to Buy Gold

For the first time on record (based on Bloomberg’s data) 5-year / 5-year forward inflation expectations turned negative today. This kind of deflationary impulse has occurred twice in recent years and each time has been accompanied by dramatic Federal Reserve … Continue reading

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Copper Is Signally Ben Bernanke’s Greatest Fear: Deflation

Precious metals have taken a direct hit this past week as their prices collapsed. Silver dropped over 25% and gold lost over $200/oz. The following article outlines a cogent argument for watching the price of copper. If he is correct, … Continue reading

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