If inflation is a quiet thief, then deflation is an armed burglar. You wouldn't invite either into your home, yet chances are that one of the two is stealing your money right now.
Here's the good news: You can protect yourself, but only if you know which villain to prepare for.
And, while the usual suspects failed to anticipate the major component of deflation, EWI president Robert Prechter set the stage early for its arrival in his 2002 book Conquer the Crash (Third Edition: 2014). There in Chapter 9 Bob outlined the following preconditions for deflation that, when read in the context of today's financial crisis, are nothing short of impeccable:
"When social mood trend changes from optimism to pessimism, creditors, debtors, producers, and consumers change their primary orientation from expansion to conservatism. As creditors become more conservative, they slow their lending. When debtors become more conservative, they borrow less or not at all. As consumers become more conservative, they save more and spend less.... The next chapters present a discussion that will allow you to understand today's money and credit situation and why deflation is due."
Read that chapter, When Does Deflation Occur?, along with Chapter 11, What Makes Deflation Likely Today?, from Prechter's Conquer the Crash in this free resource.
Visit Elliott Wave International to Download Your Free Report on Inflation and Deflation.
Did the announcement of Apple's Vision Pro AR headset this week make the metaverse cool again? It at least fired up some of the "metaverse" stock pitches we've seen in recent years, so many of them are back, new and improved and still hinting at riches to come. One that folks have asked about is the "Hidden Metaverse Stock" for Gen Z that Ross Givens has been touting for a while, so I updated my story about that for you today, with some comments about Apple's new product and other stocks thrown in... just click below to..