#InflationAccelerating remains our #1 non-consensus Macro Theme.
Check out the CRB Index which closed up another +1.1% yesterday. It’s now up almost +8% year-to-date (and it’s still only February). Compare that with the S&P 500 which fell -0.65% yesterday and is down -1.1% YTD.
Gold? It rose another +0.2% to over +9% YTD.
What's that? Consumer Discretionary has fallen -3.2% YTD? Exactly. There’s no question that inflation is a tax on U.S. consumption expectations.
Keep a close eye on the Financials (XLF). As the US Dollar and Rates go, so goes the Financials (they were down -1.4% yesterday) and the market. The long-end of the yield curve needs to rise for the XLF to work – not get “rate guided” down by un-elected bureaucrats in Washington.
Got US #GrowthSlowing yet?
