Faber is right. What he said on Bloomberg (click here) repeats what I have been -- repeatedly -- writing in this blog.
The decline of the dollar is a symptom of our loss of competitiveness and possibly higher inflation in the future. It is wrong to think that a declining dollar will cause inflation. It is the other way around! The prospect of higher inflation, reflected by lower productivity, is causing the dollar to decline.
The origin of inflation is credit growing faster than GDP. This is what has happened in the past two years. Inflation will come. But it is too early to worry right now. Stay tuned.
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.
I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.
George Dagnino, PhD
Editor, since 1977
Ranked No. 1 market timer by Timer Digest
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