This may be the most important chart for me in the big picture sense because I will use it's cues to help me decide if my dollars are safe or if I need to protect against inflation now. This chart shows the dollar is either going to pop or drop, hell maybe both(we already had one fakeout to the upside). My feeling is that we are first in for a major deflationary cycle where asset prices will plummet across the board due to lack of demand. No amount of money printing can change that.....or can it?
I guess I could also see stocks blasting off due to massive inflation that is occurring. But I think this phase of "maybe we're out of this pandemic soon" is going to come to an end when we start to see the widespread insolvency that is going to occur due to 30 million people losing their jobs. The need for dollars will be insatiable to pay down dollar debt all over the world. In this case I predict prices will plummet and the dollar will rise even as the Fed prints infinite money to counteract it. That's where my money is for now, long dollars.
I guess I could also see stocks blasting off due to massive inflation that is occurring. But I think this phase of "maybe we're out of this pandemic soon" is going to come to an end when we start to see the widespread insolvency that is going to occur due to 30 million people losing their jobs. The need for dollars will be insatiable to pay down dollar debt all over the world. In this case I predict prices will plummet and the dollar will rise even as the Fed prints infinite money to counteract it. That's where my money is for now, long dollars.