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Globally co-ordinated “Mother of All Stimulus” to respond to Covid-19

Remember MOAB? The Mother Of All Bombs? Well now there is MOAS – Mother Of All Stimulus. Coming soon to a country near you. Is this going to be enough?

Incrementum thinks NO. In fact it could be the straw that breaks the “deflationary camel’s back”. Translation: this could backfire and spark a massive inflation run. Incrementum points to the fact treasury yields have stopped falling for the past two days even though major equity indices collapsed.

Meanwhile how is gold doing? Incrementum observed the drop in gold and gold miners is not unlike the dash to liquidity that also happened in 2008. But with a big difference. In 2008 gold and gold miners had already been on a massive bull run since 2002. Today they are coming out of a 6 year bear market. Last Friday miners got chopped in half, how’s that for a sale?

What do you think?

Incrementum Research Report on Mother of All Stimulus to come for Covid19

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