Bloomberg/Lisa Abramowicz/1-23-2023
“Yes, there was talk of catastrophic tail risks, but there was relatively little said about the most obvious threat to global well-being: stagflation. But the positive developments lightening everyone’s mood are making stagflation—slowing growth combined with rising prices—look increasingly likely.”
USAGOLD note: Like inflation (a component of the stagflation scenario along with economic stagnation), stagflation is a process, not an event. At times, it might be front and center. It can also fade in the face of other concerns. All the while, it is doing subtle damage in the financial markets (and private investment portfollios). Gold and silver were two top-performing during the stagflation of the 1970s.
Gold, silver, and the Dow Jones Industrial Average
(1970-1979)
Chart courtesy of TradingView.com • • • Click to enlarge
