You’d have to be willfully blind at this point, or trying to market or sell a long only Gold fund, to not see inflation.
Inflation is clearly live and present in the commodities and bond markets. It’s even obvious from a breakeven perspective.
Some of the wonky or academic types won’t see inflation until they see Headline CPI prints (which of course, we think will be north of 3% in the coming months).
But for a long time, people would say, “Oh, well look at breakevens.”
Yeah well now look at breakevens, they’re at cycle highs. So what you want to do is be long this stuff before the crowd is.
You can see the CRB Commodities Index continues to hit a series of cycle highs, up +2% last week and up +21% in the last three months.
Last week was a rip-roaring #Quad2 week – we had the Dollar down and inflation up. Of course, Oil and Natural Gas are ripping higher this morning.