Our Top 10 report was just published. In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.
Outlook For Yields Turns Lower
Despite a historic CPI print, yields are unanimously pointing lower, including other vital metrics from different asset classes. Both the Copper/Gold and Regional Bank/REIT ratios have been pointing down for some time, and the all-important High Yield/Treasury Bond spread is shifting to a more bearish tilt for risk assets. It’s pretty clear right now that either the Bond market disagrees that long-term inflation is here to stick around or disagrees with the stock and commodity market on how it’ll affect.
This is where a lot of our mixed signals are coming from right now. Risk assets and commodities, particularly Crude Oil, are pointing to further upside for risk, while the Bond market is beginning to raise some alarm bells. And if we know anything about the Bond market, we consider it smart money. Watch this space...
