{"id":45495,"date":"2019-04-19T11:57:45","date_gmt":"2019-04-19T16:57:45","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45495"},"modified":"2019-04-19T11:57:59","modified_gmt":"2019-04-19T16:57:59","slug":"contrarian-alert-is-inflation-dead-makes-the-cover-of-businessweek%ef%bb%bf","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45495","title":{"rendered":"Contrarian Alert: \u201cIs Inflation Dead?\u201d Makes The Cover Of Businessweek\ufeff"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/realinvestmentadvice.com\/contrarian-alert-is-inflation-dead-makes-the-cover-of-businessweek\/\">Contrarian Alert: \u201cIs Inflation Dead?\u201d Makes The Cover Of Businessweek<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In the financial world, those who subscribe to the contrarian school of thought (including myself) keep an eye out for certain cues or indications that a trend has become overcrowded and is nearing its end. Some examples of these contrarian indicators are&nbsp;<a href=\"https:\/\/twitter.com\/TheBubbleBubble\/status\/1118574463598104576\">investor sentiment<\/a>&nbsp;indexes, fear gauges such as the CBOE&nbsp;<a href=\"https:\/\/finviz.com\/futures_charts.ashx?t=VX&amp;p=w1\">Volatility Index<\/a>&nbsp;or VIX, the construction of record-breaking&nbsp;<a href=\"https:\/\/realinvestmentadvice.com\/negative-interest-rate-insanity-is-behind-western-europes-new-tallest-skyscraper\/\">skyscrapers<\/a>, and also the topics that are chosen for finance and business magazine covers. The last example is called the Magazine Cover Indicator and the logic behind it is that, by the time a trend has gained enough momentum or attention to justify its own cover story, it is about to become pass\u00e9. In an infamous example, Businessweek published the cover story \u201c<a rel=\"noreferrer noopener\" href=\"https:\/\/www.businessinsider.com\/death-of-equities-revisited-2012-8\" target=\"_blank\"><em>The Death Of Equities<\/em><\/a><em>\u201d&nbsp;<\/em>on August 13, 1979, right before the secular bull market began.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bloomberg Businessweek\u2019s latest cover story is called \u201c<a rel=\"noreferrer noopener\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-04-17\/did-capitalism-kill-inflation\" target=\"_blank\"><em>Is Inflation Dead?<\/em><\/a>,\u201d which should make contrarians question whether the actual risk is higher inflation (or hidden inflation, as I will explain).<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/realinvestmentadvice.com\/wp-content\/uploads\/2019\/04\/BWInflation-768x1024.jpg\" alt=\"\" class=\"wp-image-416073\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Here are the first few paragraphs from this piece \u2013&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>If economics were literature, the story of what happened to inflation would be a gripping whodunit.\u00a0<strong>Did inflation perish of natural causes\u2014a weak economy, for instance<\/strong>? Was it killed by central banks, with high interest rates the murder weapon? Or is it not dead at all but just lurking, soon to return with a vengeance?<\/p><p>Like any good murder mystery, this one has a twist. What if the apparent defeat of inflation blew back on the central bankers themselves by making them appear expendable? Far from being lauded for a job well done, they\u2019re under populist attack.<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Contrarian Alert: \u201cIs Inflation Dead?\u201d Makes The Cover Of Businessweek In the financial world, those who subscribe to the contrarian school of thought (including myself) keep an eye out for certain cues or indications that a trend has become overcrowded and is nearing its end. Some examples of these contrarian indicators are&nbsp;investor sentiment&nbsp;indexes, fear gauges [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[83,25667,124,25666,24838,15470],"class_list":["post-45495","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bloomberg","tag-businessweek","tag-central-banks","tag-contrarian-alert","tag-jesse-columbo","tag-real-investment-advice"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45495"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45495\/revisions"}],"predecessor-version":[{"id":45496,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45495\/revisions\/45496"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}