Inflation or Deflation?

By: Ian Campbell | Wed, Jun 13, 2012
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Why Read: Because whether we are going to be faced with inflation or deflation in the developed countries, and the world economy generally is a critical question - and one that affects not just investors, but everyone.

Featured Article: In a recently published article Michael Pento (Pento Portfolio Strategies), said to be an Austrian School of Economics specialist, says (among other things):

Commentary: Mr. Pento concludes his article by saying that:

Mr. Pento has to be right in a number of the things he says. In particular that:

That said:

One might think of the world as an 'economic 190 egg 'scrambled egg mixture' that continues to be beaten, and hence is a work in progress until it is put in a pan and cooked. In the end, the 'proof of the omelet is in the eating'. From 20,000 feet, it seems reasonable to think that:

Mr. Pento does not venture a specific opinion as to whether in the longer term world inflation or deflation is likely to occur. That is sensible on his part, given the seemingly limitless number of permutations and combinations of things that might happen in our ever more complex economic world going forward. His views are very relevant to short term changes that can be observed and acted on in an investment/trading environment.

You ought to read Mr. Pento's article, this commentary, and everything else you can get your hands on - then reach your own conclusion(s) with respect to the likelihood of an inflationary or deflationary environment as things unfold.

Answer to the Most Important Question Facing Investors Today
Source: King World News, Michael Pento, May 20, 2012
Reading time: 4 minutes



Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Business Transition Simplified

Through his website and his Business Transition & Valuation Review newsletter Ian R. Campbell shares his perspectives on business transition, business valuation and world economic and financial markets influences on those two topics. A recognized business valuation and transition authority, he founded Toronto based Campbell Valuation Partners Limited (1976). He currently is working to bring his business valuation and transition experience to both business owners and their advisors in our new economic, business and financial markets normal.

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