The No Inflation Trade

The No Inflation Trade

It is no accident, that I’m not a fundamentalist. The abstraction implicit to the technical approach, aids and abets my natural taciturnity. The idea that price discounts everything (known and unknown) appeals to me. Abstraction, also generalizes, which in turn allows for very economical application to a spectrum of domains.

Since I’m not inclined nor equipped to discuss topics related to economics, and in particular the subject of inflation, I instead  submit, that in the limit of generalization, it is what occurs when too much money chases too few goods and services. So there you have it. Rather than posting volumes of data on velocity of money supply, changes in wages in relation to GDP, monetary and fiscal policy patterns, etc., I as is typical, opt for a far simpler description. 

By this simple reckoning, I reckon, that at least currently, there is little to no inflation (thus the title of this article). Given this state of affairs and given my vast appreciation of obscure inter-market relationships, my trade of the moment is to short the Swiss Franc.

This coming Thursday (06/19/14) at 1:00 pacific time, I’ll present a webinar where I’ll mostly be discussing my analysis on the silver market. I may also address questions concerning the trade in the Swiss Franc. Subscribe and tune in to learn the details of my analysis.


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