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Tom McClellan points out that meaningful bottoms in the Consumer Price Index (CPI) inflation rate tend to occur approximately every 5.31 years on average.
He adds that while current market conditions may resemble previous cycles, it is the cycle itself that is driving inflation higher rather than any apparent resemblance to prior periods.
McClellan has previously attributed a recent market correction to bearish seasonality during the presidential term and a failure of the RASI +500 level, according to a recent analysis. He also recently noted that large net long positions among Bitcoin futures traders contributed to a breakout as prices rallied above the downtrend line, as reported in a separate post. The current comments on inflation cycles follow these earlier observations on market trends.