Biggest risk of 2014 is ......

Friday, January 10, 2014 Francisco Carneiro 0 Comments

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Still Deflation, the GaveKal Price indicator is at -7 the minimum on the scale. It's possible that we see CPI near zero in 2014. I don't see the FED ending QE soon.

 Why are we in a deflation trap?

 a)Automation & Technology make it cheaper to produce
b)Unemployment is huge
c)Excess capacity everywhere

 I agree with this view. Treasury yields will not go trough the roof.
From Gave-Kal research

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