15-20 YEARS OF DEFLATION? – Pragmatic Capitalism

That’s what renowned economist Dr. Lacy Hunt is calling for.

The US is in a period of debt deflation that may take up to 15 to 20 years to normalise

The S&P is at risk of some ‘false dawns’

There will be a major shift in US consumer behaviour as savings start to rise and people live more within their means

He describes the US stimulus in its current form as a grab bag of political promises and says it may be doing even more damage

Diversified equity portfolio models may not work in the debt deflation environment

Read the full article here.

*Thanks to reader DF

About Post Author

Cullen Roche

Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds. Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances. He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.

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