When Will the Helicopter Take Off?

The quarterly meeting of the Incrementum Fund’s advisory board was held on July 19. A pdf transcript of the discussion can be downloaded via the link below. We were once again joined by special guest Brent Johnson, the CEO of Santiago Capital.


Helicopter_money_05.20.2016_largeThe new obsession of liquidity junkies around the globe: helicopter money! This should cement the “TINA” rationalizations for buying hopelessly overvalued stocks and bonds, right?

Cartoon by Bob Rich


This time the debate revolved around the threat of “helicopter money”, which has become a lot more tangible after Shinzo Abe’s election victory and the aptly nicknamed Helicopter Ben’s visit to assorted Japanese GOSPLAN movers and shakers shortly thereafter.

As always though, a wide range of topics was discussed, including the current market views of the participants. Below is the latest chart of the proprietary  Incrementum inflation signal (a purely market-based signal that is more sensitive than the usual “inflation expectation” indicators), which continues to indicate that inflation-sensitive assets should be favored at present.

This is particularly interesting right now: Although inflation-sensitive assets have  rallied quite a bit, they are actually still trading at low levels historically. As we have pointed out in our own comment on the “helicopter money” threat (see “The Central Planning Virus Mutates” for details), price inflation seems to be on no-one’s radar right now, which makes expecting it a contrarian proposition well worth pondering (perhaps not in the short term, but certainly in the medium term).

If it were to appear on the scene, it would upset a great many plans, and ravage a great many portfolios. It would also boost portfolios prepared for the event though – as always, the formula “crisis = opportunity” applies.


1-Incrementum Inflation SignalThe proprietary Incrementum inflation signal remains at its maximum positive reading of 1 – click to enlarge.


In this context we would be remiss not to show you another chart from the transcript, which should be of great interest to gold bugs and those considering whether they should join the gold bugs. It shows the recent bull market in gold mining stocks compared to several historical bull markets. Naturally, this is not a guarantee for anything, but it is certainly interesting.


2-Gold bull markets comparedThe recent bull market in gold mining stocks is still young and full of potential compared to a number of predecessors – regardless of the fact that a near term correction could strike at any time – click to enlarge.


Here is the download link the the transcript. Enjoy!


Incrementum/ AEGO Advisory Board Meeting, July 2016 (pdf)




Emigrate While You Can... Learn More




Dear Readers!

You may have noticed that our so-called “semiannual” funding drive, which started sometime in the summer if memory serves, has seamlessly segued into the winter. In fact, the year is almost over! We assure you this is not merely evidence of our chutzpa; rather, it is indicative of the fact that ad income still needs to be supplemented in order to support upkeep of the site. Naturally, the traditional benefits that can be spontaneously triggered by donations to this site remain operative regardless of the season - ranging from a boost to general well-being/happiness (inter alia featuring improved sleep & appetite), children including you in their songs, up to the likely allotment of privileges in the afterlife, etc., etc., but the Christmas season is probably an especially propitious time to cross our palms with silver. A special thank you to all readers who have already chipped in, your generosity is greatly appreciated. Regardless of that, we are honored by everybody's readership and hope we have managed to add a little value to your life.


Bitcoin address: 12vB2LeWQNjWh59tyfWw23ySqJ9kTfJifA


Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • India’s Experiments with COVID-19
      Shooting from the Hip [ed. note: the tweets linked below mainly show videos from various lockdown phases]   Reminiscent of his demonetization effort in 2016, on 24th March 2020, Indian Prime Minister Narendra Modi, appeared on TV and declared an immediate nationwide curfew. No one was to be allowed to leave wherever he or she happened to be. All flights, trains (after 167 years of continual operation) and road transportation came to a complete, shrieking...

Support Acting Man

Austrian Theory and Investment


The Review Insider


Dog Blow

THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

Realtime Charts


Gold in USD:

[Most Recent Quotes from www.kitco.com]



Gold in EUR:

[Most Recent Quotes from www.kitco.com]



Silver in USD:

[Most Recent Quotes from www.kitco.com]



Platinum in USD:

[Most Recent Quotes from www.kitco.com]



USD - Index:

[Most Recent USD from www.kitco.com]


Mish Talk

    Buy Silver Now!
    Buy Gold Now!