A brief quote from the February 24th edition of Richard Salsman’s InterMarket Forecaster:
[I]t is somewhat bizarre that economists, Fed officials and commentators in the financial media have been worrying about ‘deflation’ (a rise in the purchasing power of a currency) in recent years and months. Not only is deflation non-existent — but if it did exist it would be bullish for equity performance. The bearish results seen in world stock markets since early 2000 have been due, in part, to an acceleration in inflation — not to ‘deflation.’ The first sign of higher inflation came with the rise in the dollar-gold price that began in September 1999. That decline in the dollar versus gold was followed by a persistent rise in broad commodity prices…