The US May See More Inflation Spikes
The yellow drawing is an example of what I believe inflation may look like throughout the rest of this decade.
Note that since the great depression, the US has experienced five bursts of inflation above 8.0%.
With current inflation running at 8.30%, the 6th spike may be occurring now.
History shows that when inflation spikes above 10.0%, a second higher spike soon follows.
To paraphrase, I heard respected investor Felix Zulauf once say that the second inflation spike is usually much worse than the first.
Takeaway: If the 2022 inflation numbers stretch above 10%, then the odds of something worse coming after 2024 will increase dramatically, in our view.
Note that since the great depression, the US has experienced five bursts of inflation above 8.0%.
With current inflation running at 8.30%, the 6th spike may be occurring now.
History shows that when inflation spikes above 10.0%, a second higher spike soon follows.
To paraphrase, I heard respected investor Felix Zulauf once say that the second inflation spike is usually much worse than the first.
Takeaway: If the 2022 inflation numbers stretch above 10%, then the odds of something worse coming after 2024 will increase dramatically, in our view.
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