Give Me The Inflation Baby!
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This is all happening as the CRB Commodities Index breaks back above its 2016 lows.
This is a big deal:
Are you wondering why rates around the world have been rising? What inflation are they countering?
Well, I think here you have it. You're seeing it.
If the CRB Index is above its 2016 lows and Crude Oil is above 40, it's hard for me to argue otherwise.
Besides, the bond market is pricing in the same thing. TIPs (Inflation-Protected Treasury Bonds) are breaking out to new 52-week highs relative to Traditional (non-inflation-protected) bonds:
If you're wondering, yes I think it's good for stocks. I certainly don't think it's bad for them. Higher rates, higher commodities, emerging markets outperforming, weaker dollar, etc...
I think it's all part of the same story.
We discussed this and more on last night's live call.
What do you think?
Am I on to something here or naw? Let me know.
JC