Weekly Paid Newsletter 10/24/2021

Asymmetric Portfolio +23.37% YTD.

• PPI at record highs, how to interpret it and what it means to us

• Back to the 2000s with DWAC's SPAC deal.

• We're back with Q3 earnings weeks, this week Netflix, Snap and Tesla, among others

• Bitcoin hits ATH but fails to break through the previous barrier with strength

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Inflation is no longer news and can be found on the front page of any newspaper around the world. Prices of goods and services are rising at a rate not seen in decades. This inflationary spike, accompanied by actual and feared supply shortages, is fueling both consumer and producer anxiety.

Once the narrative that inflation is not transitory begins to wear thin, measures are being sought to pass one of the most severe tests ever seen. One of the indicators that best shows the severity of the situation is the comparison between the Producer Price Index (PPI) and the Consumer Price Index (CPI), economic indicators used to measure inflation in the United States. These indicators have been highly correlated and today the PPI, a metric that measures the average change in sale prices for the entire domestic market of raw goods and services, is at record highs. Below we show you what could be assimilated to what happened in 2000 and 2008: