The Performance of “Deflation Asset” vs. “Inflation Assets”

The Performance of “Deflation Asset” vs. “Inflation Assets” Interesting chart showing the performance of “Deflation Asset” vs. “Inflation Assets” since 1960. “Deflation Asset”: Government Bonds, US Investment Grade, S&P 500, US Consumer Discretionary, Growth and US High Yield “Inflation Assets”: TIPS, EAFE, US Banks, Value and Cash Picture source: BofA Merrill Lynch

Is Inflation Dead? Deflation Fears Make A Comeback

Is Inflation Dead? Deflation Fears Make A Comeback Is deflation on the horizon? Investors expect inflation running below 1.5% YoY for the next three years. Picture source: Arbor Research & Trading

Growth and Inflation

Growth and Inflation This chart shows the ISM Index vs. prices paid deviation from the mean since 2009. Currently, the U.S. manufacturing cycle has headed back into recession & deflation. Picture source: Fidelity Investments

Why Do Eurozone Bond Investors Accept Zero Long-Term Interest Rates?

Why Do Eurozone Bond Investors Accept Zero Long-Term Interest Rates? Because they have a deflationary view of the euro area economy. Now, investors are losing so much money just by holding German bonds in real terms (adjusted for inflation). Today, the Germany 10-Year bond yield hits 0% again. Keep in mind that raising interest rates in…