From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
TIPS versus Treasuries is one of the most important charts we’re watching right now, as it’s hitting its highest level since early 2013. Relative strength from TIPS hints that investors are positioning themselves for a sustained surge in inflation.
This makes sense given both the five- and 10-year breakeven inflation rates have reached their highest levels in more than a decade.
As investors react to signs of impending inflation, many cyclical stocks that benefit from higher rates are catching a bid. A great example of this is the Metals and Mining ETF $XME.
Let’s take a look! [Read more…]