Current interest rates are at there most recent highs, signaling inflation will be up.
I think that's wrong, I believe we have seen the high for inflation, at least for now.
I think its possible next weeks number will suggest inflation is coming down. So I think the two year bear market in bonds maybe over, at least for now.
If next weeks inflation print does come in lower than expectations then that will cause bond prices to rally, interest rates to lower, and possibly cause the USD dollar to weaken.
If the dollar weakens then I would not be surprised if gold rallies higher, and take emerging market currencys higher and their share markets.
It may even cause Sterling to rally. Maybe even share markets in the UK will rise.
War in Iran.
If the war in Iran does not wind down that's one area where I might be wrong.
If the war heats up the USD probably will stay strong. Inflation unusually high, and interest rates may not come down, thats where I could be wrong.
I believe the Fed. Treasury Department wants a weak USD dollar and lower rates to fund the wars, and deficit.
So only time will tell.
I basically would buy gold coins here if I didn't own any, or if I was willing to hold them two years or more. I would also own them because they are an invisible asset to own.
Thats it for now. Thanks for reading.
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