COVID-19 inflation effect sees a massive pre-pandemic to post-pandemic difference as inflation reportedly grows from 10% to a whopping 17% after COVID-19. How bad could these numbers be and how did the pandemic affect inflation?
COVID-19 Effect on the Economy
According to a certain account @xtrends on Twitter COVID-19 inflation will bring inflation to 17% after COVID. In order to thoroughly understand where the statement is coming from, the twitter users' bio lists down the credentials of the owner of the account.
xTrends is reportedly a trader, painter, engineer and has been trading ever since 1998. One thing also noted is that the account's life's work includes the Structural Principles of Market Trends. Aside from this, the account also supposedly belongs to the founder of Turkuaz Global and D&Co Capital Sciences.
Post-COVID-19 Inflation
Doing a quick search online would not be too fruitful as the name of the founder is not readily available. What is available, however, is the account's market watchlist. According to xTrends, before COVID-19 ever happened, the real inflation was at 10%. After COVID-19, the account states that it will be at 17%.
It was also noted that the CPI number is actually "completely irrelevant" and that China now has "more reliable numbers" compared to that of the United States as of the moment. T-Bonds were also noted to be rising due to the whole reverse repo operations of quite epic proportions. This is now the only transitory thing as of the moment.
According to the account's page on Stocktwits, there are 32 markets being watched by this account.
Here are the markets being watched by xTrends:
SMH - VanEck Vectors Semiconductor ETF
SOX - Philadelphia Semiconductor Index
TF_F - Russell 2000 Index Mini Futures
YM_F - E-Mini DJIA ($5) Futures
NQ_F - E-Mini NASDAQ 100 Futures
ES_F - E-Mini S&P 500 Futures
USDX - US Dollar Index
GC_F - Gold Futures
GLD - SPDR Gold Shares
VXO - CBOE OEX Implied Volatility
CPC - The CBOE Put-Call Ratio
TICK - NYSE - TICK
TRIN - Arms Index
RVX - CBOE Russell 2000 Volatility Index
VXN - CBOE NASDAQ100 Volatility Index
VXX - iPath S&P 500 VIX Short-Term Futures ETN
VX_F - Volatility Index Futures
VIX - CBOE Volatility Index
TYX - CBOE 30-Year Treasury Index
TNX - CBOE 10-Year Treasury Yield Index
TLT - iShares 20+ Year Treasury Bond ETF
OIH - Oil Services HOLDRs
XLE - Energy Select Sector SPDR
XLF - Financial Select Sector SPDR
DJIA - Dow Jones Industrial Index
RUT - Russell 2000 Index
IWM - iShares Russell 2000 Index ETF
NASDAQ - NASDAQ Composite
QQQ - PowerShares NASDAQ-100 QQQ
DIA - SPDR Dow Jones Industrial Average
SPX - S&P 500 Index
SPY - SPDR S&P 500
While it might be quite hard to confirm as to whether or not inflation numbers post COVID-19 will indeed reach 17%, this is an alarming thought to think of. With the massive inflation, people have to beat it either by earning more, protecting their capital, or invest in higher interest assets.
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Written by Urian B.