Gold can be a hedge against…
Lyn explains how year-on-year data can be misleading and why in Q3, the statistics will appear to worsen.
Several factors could affect the CPI, including increased commodity demand globally. Some commodities may stay at new levels and might not fall much overall. CPI metrics are relatively inaccurate due to quality adjustments and lack of important factors like housing, healthcare, and food. The Fed plans to overshoot its 2% inflation target for a period of a few months. The question will be how difficult it will be to reduce it.
She discusses the impacts of growing base money and stimulus. We just had the largest year-on-year growth of the money supply since World War II.
Gold can be a hedge against negative real yields, and the timing for the next gold move will track real rates.