Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to subscribe.
"... Reflation (per Wikipedia) “is the act of stimulating the economy by increasing the money supply… seeking to bring the economy (specifically price level) back up to the long-term trend.”
That, my friends, is central-planning-cheerleading 101. So whoever’s research you are reading that continues to cheer on “600 rate cuts globally” being the elixir for perma-asset-price-inflation is still looking for Waldo (i.e. demand accelerating).
Here’s how “reflation” looked in commodity portfolios."