TOP 10 Q & A's

Q9. How do you plan to monitor the inflation/deflation issue?

 

I have put together something I call my Inflation/Deflation Watch, which is an unweighted composite of what are many of the most significant indicators of the direction of the global economy, noted on the bottom of the chart below.

 

 

Our Inflation/Deflation Watch (IDW) was profoundly deflationary following the Lehman Brothers collapse last September. It has since turned up to a more neutral reading at the present time, though our expectations are that this is only what is known on Wall Street as a “dead cat bounce.”  Mostly because the American consumer, which had been the growth engine of the world, is tapped out in his savings and credit, and because balance sheets of consumers have to be restored over many years before any serious buying develops again, we think it likely the global economy will remain depressed for some time to come. As a result, we are anticipating another decline in our IDW before the end of 2009, most likely in the autumn. We report our IDW weekly to the paid subscribers of J Taylor’s Gold, Energy & Tech Stocks on a weekly basis at www.Miningstocks.com.

 

 

 

 

 

 

 

 

 

 

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