Deflationary Pressure Short Term - I am not seeing Inflation

2 Replies

Every morning, the first thing i check is the US Dollar index, not the VIX as the dollar index is an  indicator for me where things are headed. We are at a critical junction right now as once the dollar index breaches above 85 index it is going to head towards 90 putting further pressure for the precious metals, S&P, and the euro. 

As I had mentioned before that the Commodity cycle peaks every 30 years. The last time the commodity cycle peaked was in the year 1980. The dollar bear market rally started right where the commodities cycle ended in 2011 which I believe will last into 2016 - 2018 right where the 18 year bear market cycle will come to an end for the S&P.   


The Central Fund of Canada is the representation for the Gold/Silver Chart.



The U.S. Dollar Index - Currently at 84.774



The Euro / USD exchange - 1.2832



The S&P 500 CHART from 1950 - 2014

Written on September 22nd, 2014.

You nailed it.  Gotta give you props.  It's all about the cycles.  Do you agree that the dollar is the best currency to be investing in these days?  Do you agree that commodities don't fluctuate as much as people think, and that it's actually soft currency that fluctuates?  Let me ask you this.  Why did it take so long for oil to tank?  It seems like oil trailed reality for 2-3 years.  Is it because of all of the psychology around fossil fuels, "climate change", and such?  Did the traders just have a free ride for the last 2-3 years?  Did the world finally look around and suddenly realize there was oil busting at the seams?

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