Karl Denninger/zero hedge

Looks like fundamentally we're all on the same page.

Optimist,

Concerning Trader Dan's Market Views I think that it may be premature to call the bond market bull over for good, I see higher commodity prices destroying demand and the real economy which is ultimately deflationary. What I see happening is a psychotic combination of both deflation and hyper inflation. Fed induced hyper inflation in consumer prices, this in turn leads to demand destruction and economic contraction, this combined with the fiscal cliff should result in an implosion in the real economy which paradoxically deflationary which should be bullish for bonds.

So one way to play this would be long both GLD/SLV and TLT (assuming it shows resilience next week and doesn't crash).

Thoughts?
 

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