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Hussman Funds/John P. Hussman/May 2021
“So if inflation emerges, we’re likely to see the yield curve steepen sharply, with real short-term interest rates becoming more negative, which tends to be favorable for commodities and precious metals. As usual, no forecasts are necessary. We’ll respond to the evidence as it emerges.”
USAGOLD note: Hussman says the double-counting has to do with buying the chickens with borrowed money – margin debt. A closer look a the chart below tells us that contemporary blowoffs in margin debt have preceded market crashes. Hussman pulls no punches on that account at the link under the subhead: A very long and interesting trip to nowhere.
Sources: St. Louis Federal Reserve [FRED], Board of Governors of the Federal Reserve System (US)
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