Peter Schiff Scares Ma & Pa, Inflation Gets Tuckered Out

First I disclose that I mostly agree with Schiff here and have agreed with a lot of what he has said over the years. But we are in the business of market management and so when you get contrary indicators like this…

…and this (Peter is right up there with BOND KING Bill Gross, who kicked off this little bond contrary indicator fest when Bloomberg hyped his bond bear/pro-inflation view… See How Perfect the Pause in Yields? –March 22nd, as a valuable contrary indicator in my opinion), which was mainlined right into the public’s collective skull…

…you have the ‘duh, everybody knows’ moment, with the likes of this (30yr yield Continuum) having already hit the underside of its caution zone…

…and a shall we say ripened situation for a counter-trend pullback in these; the 30yr yield (daily)…

…and inflation expectations…

It remains to be seen whether or not this is the extent of the almost magical cooling of inflation expectations that has come after the media’s various hype pieces, and I do expect the inflation to resume and intensify. But maybe we are not yet at the end of the cooling off period that has impaired the inflation/reflation trades lately.

Considering that investment strategies are very closely tied to the dynamics above, what happens from here will be important to interpret correctly.

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