Editor's Note: The chart and excerpt below are from today's Early Look written by Hedgeye CEO Keith McCullough. For more info on how you can subscribe click here.
In case you’re keeping score on the “inflation is back” trade, it’s not:
- US 5-year Forward Break-Evens dropped another 7 basis points last week to 1.56% (-18bps in the last month)
- Lumber and Paladium prices got pounded for -5.1% and -4.8% weekly losses (-8% and -14% respectively mth/mth)
- Energy (XLE) and Basic Materials (XLB) stocks were -1.4% and -0.1%, respectively, in an up US Equity tape