John Hussman: Inflation Risks Rising, Expect Volatility in Oil and Gold

by: David Jackson

One of the revelations for me in aggregating viewpoints on the US Market Blog and the Gold Stock Blog is how illuminating some of the pieces by technical and momentum analysts have been, and how they triangulate with analysis by commentators who take a fundamental approach. Here's an excerpt from John Hussman's weekly essay about inflation risks; note how consistent it is with Dave Fry's analysis published earlier today of the CRB, gold, energy ETF and dollar charts:

My impression is that the market's interpretation of inflation risks here, seen most clearly in the surge in gold prices, is basically correct. As I've long noted, inflation essentially reflects expansion in unproductive government spending. “Unproductive