Many corporations are starting to report problems with earnings. Usually, higher yields reward investors for taking longer-term risks. In the upside down world of inverted yield curves, which have been an accurate predictor of bear markets in stocks, investors get rewarded for taking on short-term risk. It's a sign of trouble in the future. Lessons Learned None of these statistics are signaling an immediate return to the double-digit inflation and economic malaise of the 1970s, but investors should appreciate the fact that, unlike the 1970s, they have the benefit of hindsight.
Stagflation is no longer unprecedented.
Investors need to prepare now. There is no guarantee that history will repeat itself. But every investor needs some financial insurance just in case stagflation does return. Gold is uniquely suited to provide your wealth with protection in the event of a recurrence of the stagflation nightmare. While investors have the opportunity to protect their wealth from the potential onset of stagflation, Washington and Wall Street better start noticing that we are headed down that road.