Deflationary
Smash!
Coming to a
Country Near You!
Considering the depth of the decline in global GDP, the massive debt accumulation by all countries, the collapse in world trade and the synchronous nature of the contracting world economies the task of closing this output gap will be extremely difficult and time consuming.
This situation could easily cause aggregate prices to fall, thus putting persistent downward pressure on inflation which will be reflected in declining long dated U.S. government bond yields (30 year Treasury bonds).
DYI: When this deflationary smash hits
interest rates as measured by he U.S. 10 year Treasury bond will go negative! Long dated Treasury bonds will fly upward with
current yields nose diving back into the sub atomic range. DYI’s bond formula – designed for compounding
investors – has had a zero commitment to long dated bonds for several years and
rightfully so. Simply put for the
compounding investor there is no sauce for the goose as in zero real growth of your
dollars. Don’t lose hope as DYI works
through 3 major asset categories, stocks, long dated high quality bonds,
precious metals – gold & silver – along with their respective mining company’s
shares. Cash – [short dated bills &
notes] is our default or warm up pen for future deployment into our major three
assets just mentioned. Below is how DYI's asset categories [updated monthly] measure currently.
Updated Monthly
No comments:
Post a Comment