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July 2017
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Not a good opening for the market

                The dollar is falling and yet the market is going lower, a double body blow for the US equity investors.  The move is small, but the trend is dangerous.  The last 6 months we have seen the dollar get devaluated to support a global market rally.  But any mathematician will tell you that “something” can’t get devaluated forever, it eventually freefall into worthlessness.

                Signs of inflation are everywhere.  The Gold had the opportunity to sell off from a huge 3 year bull run, yet it didn’t.  Gold has not dropped below 900 for over a year.  For us at Alphas Edge, this is a clear sign that inflation is alive and it won’t be going away. 

                Putting it all together leads to one simple to see conclusion.  The equity market will be supported by a Fed driving inflation of commodities.  The real economy however will be weak and subpart for years to come.  As it recovers, the Fed will have to increase interest rates to fight the beast that they have been so eagerly feeding.

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