The Dollar To Get Even Stronger? Brent Johnson’s Latest Update On The Dollar Milkshake Theory

2022 has seen the worst inflation in 4 decades, stubbornly persistent supply chain shortages, a contracting economy that may already be in recession & one of the worst first halves of the year for financial markets.

And yet the US dollar is the strongest it has been in 20 years.

That seems counterintuitive, unless you look through the lens of the Dollar Milkshake Theory. When you do, you understand an awful lot of what has been

driving the action this year.

To understand where the dollar is likely headed next, and what further implications that will have on the investing landscape, we welcome Brent Johnson CEO & Portfolio Manager at Santiago Capital, and developer of the Dollar Milkshake Theory, back to the program.

Why Is Everything So Expensive & Out Of Stock? | Wolf Richter

The disruption the pandemic has inflicted on global supply chains is really starting to harm consumers.

The world has been watching prices rise dramatically this year across nearly all goods & services — in large part caused by the $trillions in monetary & fiscal stimulus flooding into the economy as well as the disruption of global supply chains caused by the COVID pandemic.

But not only are consumers experiencing rising prices at the store, they’re increasingly

finding empty shelves, too.

On the supply side, things have become so bad that macro analyst, Wolf Richter, has coined the term “The Everything Shortage” to describe the era of scarcity we’re now experiencing.

How much longer is it likely to last?

Longer than many are expecting, warns Richter in this newly-released interview. He sees higher prices and inventory shortages continuing though 2022, and even into 2023 for certain industries. Here’s why.