Blain’s Morning Porridge/Bill Blain/6-14-2022
“Mean Reversion makes sense. For the last 13 years, monetary experimentation has led us to this corrective moment. It’s created a massive imbalance in the Force of markets (yep, ok.. only joshing about the Force, but you get the drift.) By distorting all financial asset prices through ultra low interest rates, an imbalance in the Force was created. That is now going to be rectified. Unfortunately… it will hurt. Consequences. Consequences.”
USAGOLD note: May the force be with you …… “The bottom line,” says Blain, “is this inflation and all its consequences are probably unstoppable.” An interesting observation as we go into the wrap-up of this week’s inflation-fighting Fed meeting.
