What is the Moore Inflation Predictor©?
The Moore Inflation Predictor© (MIP)
is a highly accurate graphical representation forecasting the future
direction of the inflation rate. It has a 97%+ accuracy rate on
forecasting inflation rate direction & turning points. And over 90% of the time the
inflation rate
falls within the projected "likely" range and 7% of the time it
falls within the "possible" range.
By watching the turning points, we can profit
from inflation hedges (like Gold, Real Estate and Energy
Producers) when the inflation rate is trending up and from Bonds when the
inflation rate is trending down.
In addition, the Moore Inflation Predictor
forecast could be used to judge
whether to lock in a mortgage rate or wait a month or two for a
better rate.
To see how well the MIP has done in
predicting inflation see some previous MIP
forecasts with a reality line added.
Current Analysis
As you long time watchers of the Moore Inflation Predictor can see... this
month we've changed the chart a bit. We made the most likely
line more obvious and the projected range lighter.
Hopefully, this will give you a better feel for what is in
store.
As you can see in this month's chart, March was virtually
identical to February.
The MIP is currently projecting a drop for the next
several months because the first quarter of 2007 had some fairly
hefty numbers which will be falling out of the calculations
shortly.
February 07 had .54% inflation which was replaced by a much
more moderate .29% for February 08.
March 07 however had a massive .91% but it was replaced by an
almost as massive .87% while April and May are virtually
identical with .65% and .61% respectively.
So as they fall out of the calculations, inflation could
decline if they are replaced by more moderate numbers. However,
April is like March (which is possible) we could actually see an
increase at the next CPI release.
Note: FED chairman Bernanke's massive
increases in the money supply almost guarantee massive inflation
over the longer term.
See
FED Bails Out
Borrowers for more information.
See
Annual Inflation Chart
for further discussion on this inflation forecast.
Tim McMahon, Editor
Financial Trend Forecaster
Disclaimer:
At Financial Trend Forecaster we
are not
registered investment advisors and do not provide any individualized
advice. Past performance is not necessarily indicative of future
performance and future accuracy and profitable results cannot be
guaranteed.
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(click on chart for larger image)
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See how accurate the MIP forecast has been in the past.
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