Let's look at the huge amount of data that we had this week. (Thanks to Wayne Anderson in my office who gathered a few hundred pages of articles for me to read while I was out.)
I had dinner with fellow analyst Greg Weldon this last Sunday in New Jersey. Watching the scores of wild swans and Canadian geese on a tranquil ocean side pond, we reflected about what Greg calls the "deflation tsunami" that is sweeping the world, which is anything BUT tranquil.
Deflation has been a long time theme of this letter. It is why I have been so bullish on bonds for years. I first wrote in the fall of 1998 that we are "approaching a period of deflation", as a summary of an article. We are now there. Let's look at the evidence, which is mounting each month.