Game of Trades: A Once in a Lifetime Financial Event is Here

Despite being only three years old, the decade of the 2020s is one for the history books. A global pandemic and unprecedented shutdowns led to Great Depression-levels of economic contraction. However, those were followed by the largest expansions immediately after.

Then, we had to contend with inflation, largely from massive amounts of money printing, but also low interest rates and supply chain issues. Finally, that inflation appears to be on the decline.

But is it? History doesn’t exactly repeat itself. But it does rhyme. And that could pose a challenge.

That’s because interest rates peaked just under 10 percent in the U.S. Now, they’re under 4 percent, still well over the Federal Reserve’s target of 2 percent.

If the Fed has to cut interest rates for any reason, such as trouble in the banking system, inflation could reignite.

That would be similar to the inflation of the 1960s and 1970s. It wasn’t a straight line higher, but had ebbs and flows.

And when inflation started to come down, increased government spending or declining interest rates simply fueled a move higher.

That could lead to issues for investors, as some sectors will likely move in and out of favor. But it should be a good time for picking individual stocks and sectors.

Stocks in assets such as commodities could be a strong winner for such a scenario. And for dividend growth companies that can be bought during bearish times for such stocks.

To watch the full analysis, click here.