The US May See More Inflation Spikes

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The yellow drawing is an example of what I believe inflation may look like throughout the rest of this decade.

Note that since the great depression, the US has experienced five bursts of inflation above 8.0%.

With current inflation running at 8.30%, the 6th spike may be occurring now.

History shows that when inflation spikes above 10.0%, a second higher spike soon follows.

To paraphrase, I heard respected investor Felix Zulauf once say that the second inflation spike is usually much worse than the first.

Takeaway: If the 2022 inflation numbers stretch above 10%, then the odds of something worse coming after 2024 will increase dramatically, in our view.

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