- Despite ongoing inflation hype, the U.S. prices paid trend indicator peaked in June 2021 and turned down - this typically leads ISM Manufacturing prices by 2-3 months and suggests inflationary pressures will continue to reverse.
- Commodities are signalling a similar story, with the Goldman Sachs Commodity Index now 11% below its late October peak and back where it was in 2018.
- A world long on the same levered assets and tons of debt but short on cash and cash flow will increasingly need to liquidate what they can.
For further details see:
A World Long On Risk Is Short On Cash