Summary: Ever since the election, the 1970s type of inflation has come into full swing, and Hoye has observed that the big game in the financial markets is inflation and financial assets. Hoye has looked at the history of these financial bubbles and the patterns that accompany them to determine what we can expect out of the current circumstances Highlights: -Since the election, the 1970s type of inflation has come into play -In the financial markets, Hoye has observed that the big game is inflation and financial assets -In a history of interest rates, you’ve never had anything trade negative on a nominal basis -People are saying tangible assets are going forward, but Hoye thinks this is improbable -Following every great financial bubble, there is a pattern -The fed was unaware in the dangers of the great financial bubble—once it’s over, most prices have deflated -The rise in commodity prices is associated with the increase in business activity you get at the final stages of a business mania -Rising real rates will be part of the post-bubble world -Copper is declining, gold’s real prices is declining, interest rates are declining, and the dollar is prepared to rally -These items are doing what they’ve done at the climax of previous bubbles Useful Links: Financial Survival Network Charts and Markets
