17 Year Inflation CyclesPoint out Stellar Investments



Inflation like everything else it seems has cycles. It trends up for years and then for almost no reason begins falling again. After a while it rises again.

Unfortunately, while it is doing its long term dance it is bouncing up and down creating so much "noise" that it is difficult to see the longer term trend.

By adding a 5 year moving average to the inflation rate we were able to smoothes out the noise so we can see the underlying trend. And surprisingly it is actually quite regular.

This information can be extremely valuable for our investment planning. Knowing that inflation will continue for several years yet, we can invest in hard assets like Oil and Gold and avoid paper assets like stocks and especially Bonds. Notice how near the peaks you have explosive Gold prices while at the bottoms you have explosive Stock and Bond prices.

see complete article at:
http://inflationdata.com/inflation/Inflation_Rate/Inflation_trends.asp





17 Year Inflation CyclesPoint out Stellar Investments