Exploit the inflation response?
In the United State's history of inflation, we can observe a specific pattern anytime the inflation rate spikes.
First in 1935, and again in 1969. Each time this happened we saw two additional spikes each about 4.5-5 years apart.
Given the recent spike in inflation in 2022, we may again see another two additional spikes in inflation. One around 2027, and another around 2032.
Thanks to the recent spike, we were able to observe first hand how the market reacts to the policy response on inflation which is to increase rates.
Further - it is likely that when the market reacts unfavorably to the increase in rates, it will bottom out in approximately 10 months like it did in October of 2022 meaning we will be able to have an idea of when to go stop shorting and enter long positions.
TLDR: market should pump til' like 2027 all things held constant xD.
First in 1935, and again in 1969. Each time this happened we saw two additional spikes each about 4.5-5 years apart.
Given the recent spike in inflation in 2022, we may again see another two additional spikes in inflation. One around 2027, and another around 2032.
Thanks to the recent spike, we were able to observe first hand how the market reacts to the policy response on inflation which is to increase rates.
Further - it is likely that when the market reacts unfavorably to the increase in rates, it will bottom out in approximately 10 months like it did in October of 2022 meaning we will be able to have an idea of when to go stop shorting and enter long positions.
TLDR: market should pump til' like 2027 all things held constant xD.