There has been a lot of blame flying around. Investors have been looking for something to pin the market’s selloff on, and they’re getting desperate.

First, investors blamed the 10-year Treasury yield nearing 3% and the Fed hinting there are more rate hikes coming.

Now, the prospect of tariffs and trade wars are being blamed for the latest frightening drop off a cliff.

And, to be fair, we’re seeing crazy volatility. Markets have dropped hundreds, sometimes thousands of points at a time, then bouncing back only to drop a few hundred more points in the last hour or half an hour of trading, then gapping up or down the next morning…

But it isn’t being caused by the prospect of inflation, the 10-year yield rising, the Fed’s expected hikes, or the warning shots of steel and aluminum tariffs that were shot across the bows of some trading partners.

The market volatility that’s scaring the heck out of investors is about mechanics, not fundamentals.

Here’s how to turn your worries into profits…

Breaking: There is No Inflation Worth Worrying Over

Inflation is only just reaching the magical, made-up level of 2% that the Fed and every central bank around the world was preaching we needed to get to stamp out the bugaboo of deflation.

As if deflation was ever really looming over us like the Angel of Death. It wasn’t!

We had crazy asset inflation, the housing bubble, caused by crazy leverage that infected a lot of the world. Then that burst and led to the Great Recession.

Prices of goods and services fell, as they do in a recession. But we never had depression-style deflation, not ever even close.

Still, the Fed and central bankers drummed it into us that we were in danger of depression and deflation if they didn’t flood the world with money and turn deflationary tsunami waves into inflationary ripples.

What was really happening was the Fed had to flood failing banks in America. All of the biggest banks in the country, all the too-big-to-fail failing banks, had to get transfusions with free money so they didn’t fail and we didn’t end up in a depression that would have made the 1930’s look like a day at the beach.

Print Friendly, PDF & Email