From the Buffaloes to the Bulls

With apologies to Buffalo Springfield...

There's something happening here
And what it is ain't exactly clear.
There's a man with some bonds over there
Telling me I've got to beware.

I think it's time we stop, traders, look around.
Is deflation coming 'round?

There are battle lines being drawn.
Gold's not right if the yield curve is wrong.
P/Es are speaking their minds
Leaving so many values far behind.

One drawback to being an aging baby boomer is the unpleasant memory of inflation. This scourge ignited during the mid-1960s, when President Lyndon Johnson tried to fight a war with ill-defined objectives and simultaneously to engage in massive government spending without raising taxes. So, how did this Texan in the White House finance all of this? He prevailed upon then-Fed Chairman William McChesney Martin to maintain an accommodative monetary stance.

We're so lucky that no parallels exist today. ...