Stagflationary shock may be next for plunging stock markets
“Stocks across the world tumbled on the news, with major benchmarks in both Europe and the U.S. now firmly in correction territory and the Nasdaq 100 index entering a bear market. ‘The effects of recent events can therefore rightly be described as stagflationary — rising prices with declining economic activity,’ said Thomas Boeckelmann, head of portfolio management at Euroswitch, drawing parallels with the malaise that hit equity markets in the 1970s.”
USAGOLD note: In short, the bearish recent past may have been little more than prologue – an afternoon nap before deep hibernation. During the stagflationary 1970s, gold rose 1820%; silver rose 1699% and stocks rose 11.5%.
Gold, silver and stocks
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