Higher Growth, Higher Yields
More "positive" data, as predicted...
Yet more infuriating news for Growth Gloomsters.
What? Me Worry?
The Richmond Fed composite index rose to 13 in May from 3 in April. In May last year it stood at -13.
There are only so many times we can shout “follow the money” from the rooftops.
What we see - and have been seeing for many, many months now - is a growth recovery in the US economy.
This was entirely predictable if you followed the right metrics.
We called this growth rebound over a year ago.
Here’s the Picture, Again
Our US Momentum Index is a composite multi-country money supply growth rate measure. It picks up the delayed effects not only of US money supply growth but also those of major trading partners.
It’s conceptually pretty simple - too simple, in fact, for many analysts who still refuse to acknowledge the enormously powerful predictive variable known as the growth rate of the money supply.
Put clearly and logically, it is THE driver of the business cycle.
The problem for bond investors now, of course, is that higher growth and higher inflation can only mean one thing…
HAVE YOU SEEN OUR GOLD MODEL’S POSITIONING FOR JUNE?
