Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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Now if you need some technocrat at the Treasury to tell you when there’s real world #InflationAccelerating, I guess that’s your problem. Hedgeye Jedis who are long of Commodities can see the inflation, daily. It’s in their Full Investing Cycle accounts. The Treasury Bond market (and Gold up another +3.2% last week) gets what Stagflation means at the particular time in The Cycle when many low to middle income earning consumers (that’s if they have a job) can’t afford it: A) UST 2yr Yield collapsed another -4 basis points to an ALL-TIME low last week of 0.11% ‘But, but… Keith, that’s because of the Fed.’ Ha! No, that’s because both Real US Growth expectations and Real Yields continue to collapse alongside Real Inflation Expectations rising. That’s why being long the growth that remains (Tech) has such a premium right now. Being long Real Estate (XLRE) is working in #Quad3 too. |
