I'm circling June because that’s when Hedgeye Nation went long the most underweight asset allocation out there – Commodities.
And when you're making an asset allocation call for Commodities, Energy (XLE) stocks are the most valuable sector to buy. The S&P 500 was flat yesterday but Energy Stocks were up +3.5%; they’re already up +15% for the year! And it’s only January 13th! That’s in sharp contrast to our Utilities (XLU) short, which is already down -2% in January.
A tremendous amount of alpha is being generated across the board.
Take a look at Corn (CORN) – that's one hell of a move. We went long in June, it broke out after August, and it’s gone vertical here in the new year.
You'd have to be a certified idiot (that's a technical term) to not notice inflation is accelerating and bond yields are breaking higher. C'mon man, take a look at the 10-year bond yield. These are not guesses.
I saw some Old Wall guy reiterating that his year-end target for the 10-year yield is 0.75%.
Go back to bed dude.