INK Ultra Money News

Our framework for the current environment: D versus G

Roger Hirst who is a regular on the Real Vision Daily Briefing makes the case for having a robust framework to assess markets in wake of COVID-19. We were working on such a framework before COVID-19 hit North America's shores. In January, we were getting increasingly worried that the US would slip into depression unless the Federal Reserve succeeded at convincing investors that it would succeed at reviving inflation to help service debt loads. That led us to think about policy failure versus policy success. We proposed that failure represents a D-economy where deflation rules and success would represent a G-economy where inflation is ignited on the back of stimulus actions. Once COVID-19 hit that framework became increasingly relevant and it is now the lens we use to assess what North American insiders are telling us. We put the framework to work in our INK Canadian Insider Index spring rebalancing video. Watch the video for an overview of where we believe Canadian stocks stand heading into the summer>>