Money Week’s Stepek on what to expect from markets until year end

Money Week/John Stepek/12-6-2021

cartoon showing an infrastructure project to tunnel through a mountain of debtCartoon courtesy of MichaelPRamirez.com

“And what’s happening now – and in fact has been happening for most of this year – is that the threat both of higher inflation and of higher interest rates is hurting the valuations of the very longest-duration assets. That is, the longest maturity bonds and the most speculative stocks.”

graphic image of a book and reading glasses A Good Weekend ReadUSAGOLD note: Stepek gives gold a mention toward the end of this article saying that if government borrowing costs spike, “central banks will be called upon to print more money. “Look for inflation hedges,” he says. “Gold is wobbly now but if inflation and financial repression are the end game here then it will pan out.” Meanwhile, the mountain of national debt driven by government spending and subject to potentially higher interest rate charges continues to grow, as shown in the Ramirez cartoon above.

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