If deflation caused by the credit market collapse overtakes the easing Fed and the falling dollar (leading us into a painful recession), we’ll hear about it from CNBC and FoxNews about nine months too late. Is there any way for the astute individual (who knows what shows up in the “news” is always past-tense) to spot the breakdown as it’s happening?
There is- watch the commodities, they react first.
Keep an eye on the charts of Oil and Gold for a top, see the dollar find a bottom against… everything, and when you’re comfortable we’ve rolled over into the spiral, plan your trades accordingly. What worked brilliantly the last year or so may suddenly stop working, and you’ll find your trades hitting stops instead of profit targets.
That will mean it’s time to get out the old playbook and mix things up, because we’ll be on the field with an entirely different opponent.
- Refinancing Subprime Loans to Prevent Debt-Deflation
- Dollar Stronger against the Euro?
- The Fed Should Not Be The Hedge Funds’ Insurance Agency
- Speaking of Deflation…