Author and former market analyst Alex Krainer is warning that inflation is sticking around. He says that the best defense against the “dark monetary arts” is to diversify your portfolio’s exposure to commodities, including physical gold and silver. As the Fed continues its inflation battle, many economists believe that the central bank will hike its key interest rate much higher than they previously predicted.

Reuters via Yahoo Finance/Indradip Ghosh
Fed to take rates higher than previously expected; more pain ahead

The Federal Reserve will hike its key interest rate to a much higher peak than predicted two weeks ago and the risks are skewed towards an even higher terminal rate, according to economists polled by Reuters.

That change in expectations came after the Fed raised rates by 75 basis points last week for the third straight meeting and foresaw going higher than it had previously thought to tame inflation, which is running over four times above target.

Since then, already battered global stocks went much deeper into bear market territory – a decline of 20% or more – on fears of recession and most currencies weakened further against the multi-decade high dollar.

You can keep reading, here.

I-System Trend Following/Alex Krainer
Inflation is here to stay

Inflation expectations in the US have tapered off since May, but the inflation genie won’t be put back into the bottle easily.

The chart above shows University of Michigan Inflation Expectations. While it has soared from 2021, it peaked in April and May 2022 and started to come down since then. But let’s take a slightly longer view of this process.

In the year 2020, a long, long time ago, I published the article, “The Coming Inflation Tsunami and How to Protect Your Portfolio,” warning that inflation could burst forth suddenly, with devastating effects for savers and investors. In 2020 the policymakers’ chief challenge was how to ignite inflation. At the time, inflation had been all but dead, stubbornly unresponsive to policymakers’ efforts to lift it to their 2% target. So the brightest monetary minds decided to let inflation loose beyond 2% and then “hit the target from above.”

Continue reading, here.

CNN Business/Kathryn Vasel
Why these ‘unretirees’ went back to work

In 2020, Joe DiPastena felt confident enough to retire earlier than planned. But by 2022, he was having second thoughts.

“When the economy started to tank and my investments started to dwindle…I started to get pretty nervous,” said DiPastena, who lives in Phoenix. “I didn’t want to deplete my savings.”

DiPastena, a 64-year-old freelance graphic designer, had considered himself semi-retired in early 2020, with a few clients. But once the pandemic lockdowns were in full swing, that work quickly dried up. Still, he was feeling good about retirement and felt his finances were in good shape.

But this year, his confidence began to wane.

You can read the full story, here.

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