Deflation Is Here

Bloomberg reports that CPI dropped 0.1% in August, after rising 0.8% in July.

Merrill Lynch economist David Rosenberg is a genius. He called this one perfectly. He's also the main reason I bought the long bond.

This means that deflation is here. Inflation is over. This will be my new investing theme. I will look for a re-entry point for bonds. I will look to short tech stocks as CAPEX plunges. I will look for opportunities to short international equities, especially basic commodity producers, and I will wait for opportunities to short individual commodities themselves.