Summary

Derek Sicklen and Dr. Frank Shostak argue that several major economies, including the USA, Eurozone, Japan, UK, Canada, and Australia, are experiencing negative money supply growth rates, indicating a deflationary trend. They suggest that negative CPI growth rates, indicating deflation, could lead to a decline in industrial production, stock market returns, and bond yields. They express concerns about the property markets, commercial mortgage-backed securities, and delinquency rates in various loan categories, all of which are interconnected and impacted by the collapse in money supply growth. Frank and Derek advise having a dynamic and cyclical approach to asset allocation in response to the evolving economic conditions.

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