Reagan Silber

Reagan Silber and Deflation Trading

Reagan Silber is the co-founder of CommonWealth Opportunity Capital.  In a newsletter the company published a few months ago, one of the subjects covered was how to trade deflation.  It is often claimed that it could be tough for market participants to demonstrate strong absolute returns in a deflationary environment, which is due to inexperience and because in general, financial instruments are unable to “deleverage[e] balance sheets and lower nominal prices.”  Still, there are some methods that can be used to profit from deflation or disinflation and these were also put forward in the newsletter.