Japanese scenario

Soft landing is unthinkable, says Larry Summers, ex-president of the treasury in the USA. Finance blogger, David Stevenson follows this thinking completely. They both think that the actions of the central banks, by raising rates very violently, will have a strong impact on inflation. A very profound impact, which could make inflation plummet very rapidly.

This combined with the fact that the long term expected natural gas price is 30 USD, instead of the 180 USD that is paid now in Europe. The gas prices are the main driver in the rising prices and the following inflation.

These two facts combined could make deflation a reality by the second quarter of 2023. Which would bring us in a Japanese scenario, with low growth, deflation, and low investments. Which will make tech stocks a lot more interesting by then, whilst they are now massively dumped by a lot of the big players and John Doe the investor.

Will history repeat itself, like what happened in the 20's and 30's of the last century?

Volatile future

They both see a mid term future with high inflation and deflation exchanging places from time to time. This will create a lot of volatility on the markets. Unlike the last decade where markets have been rising quite steadily, all things considered.
Volatility is the key word for the future, and that is not all bad, if you have it in mind up front.

And then there is of course, Robert Kyosaki, whom has once again claimed to predict the biggest stock market crash in history. I say "once again", because, I really haven't heard anything else coming from his mouth in the last decade. Let's say a broken clock, is correct twice a day too.

Keep reading about all of this people, because nobody is completely correct, and you have to figure out your own truth, by doing your own research. That is the best thing one can do. And if you do that, you will reap the benefits from it, sooner or later.

Sincerely,

Pele23

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