Stocks up Gold down Investor misconception
What sense can be made of today's market action ?
Now that the debt ceiiling farce is over, and i said it would be come the beginning of June back in Jan. right here. An expected recession is becoming more real than ever to mainstream investors who rightfully believe the Fed is going to ease off on rate hikes. Then ease into monetizing government spending to oblivion regardless of the Fed talking out both sides of their mouths which has gotten more than a little old and pretty much ignored.
This reasoning is boosting the stock market while generating the mistaken belief that a recession will blow out inflation - hence the drop in the price of gold.
Belief that inflation will subside in the next officially declared recession is complete fallacy.
The coming recession will become an inflationary depression now with zero control on what in essence is to turn into unlimited government spending over the next two years. Vastly inflationary spending at that.
I've been saying it all along here. Inflation is not going away and will worsen with devastating consequences that will ultimately and eventually finally drive gold upward at a steady clip.