It’s Trumpian Groundhog Day! (h/t Bill King)
The geopolitical world has entered a maddening news cycle. The basic formula is as follows:
- Trump proclaims that Iran has been decimated and desperately wants a peace deal.
- Iran attacks/ threatens an attack on Israel or U.S.-aligned entities.
- Trump threatens to [insert over the top language] Iran.
- Allegedly a peace deal is worked on behind the scenes.
- Trump proclaims the deal is [insert unsatisfactory language].
- Return to #1.
When or if this process will ever resolve with an actual peace deal is anyone’s guess. However, what’s clear is that the foundation is being laid for an inflationary storm to hit the U.S. sometime in the next three to six months.
The government continues to run a $1.8 trillion deficit, meaning that despite collecting a record $5.3 trillion in taxes in fiscal year 2025, the government is still spending enough money to run the kind of deficit usually reserved for major wars or recessions. In simple terms, the U.S. is not returning to pre-pandemic spending levels now, or possibly ever. We are in a new normal of extreme spending. And this is highly inflationary.
The Fed is easing monetary conditions into this, having cut rates by 1.75% over the last 18 months and launching a new $40 billion per month (nearly half a trillion dollars annualized) Quantitative Easing (QE) program.
Fiscal dominance plus monetary easing is a recipe for an inflationary storm. And the markets know it.
For all its fancy models and calculations, the Fed board tends to follow the yield on the 2-Year U.S. Treasury. The yield on that bond is now breaking out to the upside, signaling that its primary concern is higher inflation.
And the Trump administration wants the Fed to start cutting rates aggressively into this mess?
Ignore the geopolitical noise. The clear signal from the bond market, one of the most liquid sophisticated markets is signaling another surge in inflation is on its way. And those investors who are properly positioned to benefit from this will likely see EXTRAORDINARY profits.
On that note, we just published a Special Investment Report concerning FIVE secret investments you can use profit from the next major bull run in precious metals miners.
The report is titled Survive the Inflationary Storm. And it explains my top precious metals plays, including their names, their symbols, and the resources they own. These are HIGH OCTANE positions that rallied 75%, 140%, 150%, 180%, 280% and an incredible 574% in 2025. And I wouldn’t be surprised to see them repeat this performance in 2026.
Normally I’d charge $499 for this report as a standalone item, but in light of what is unfolding today, we are making just 100 copies available to the public.
To grab one of the last remaining copies…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
