Tuesday, February 20, 2018

Morgan Stanley Not Worried About Inflation in 2010

January 4, 2010 by  
Filed under Inflation or Deflation

In their Strategy: Euroletter, November 30, 2009; Morgan Stanley’s research team (led by Teun Draaisma) predicts that inflation will not be a problem in 2010. The report states:

We are not worried about problematic inflation in 2010, but we believe inflation will start an upward tend that could eventually become problematic.

Longer term, the Morgan Stanley research believes “this cycle is likely to end in higher inflation than usual”. So not surprisingly, they are bullish on gold.

“Hedging their predictions”, just a bit, they cite the Jim Rogers Rule “that in every bull market things go to all-time highs. So if the Jim Rogers Rule holds true, and gold will reach $2,500 per ounce and then some, assuming it reaches its inflation-adjusted high.

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