Cat and Mouse

” The issue at hand is delicate, the mouse has such a lead on the cat that it would be surprising for the cat to succeed after falling asleep for so long.”

The one thing that we could say with confidence is that consistency is the Fed´s strong hand; they always get it wrong.

In fairness, the global picture currently is rather complex. A tad more than when the ridiculous comments of temporary inflation by Mr. Powell.

That being said, in the foreseeable future inflation, regardless of Fed activity, will remain.

If we look closely at the Fed´s language; even though the stock market has suffered greatly since November 2020, further pain may be expected.

An aggressive tightening cycle could maintain a selling bias for stocks. At a certain point, investors will seek traditional safe-haven assets such as precious metals on a much larger scale.

In closing: China is taking a back seat in today´s headlines, but make no mistake, this economy will come back in full force, and when it does, discounts on raw-materials that offer excellent opportunities will fade away quickly. By the way, China has other little disruptive plans in store for the world, Taiwan.


Short-term: Headlines are your buying opportunities.

Long-term: Fundamentals are your guide.

Much success to all.  

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