Depending on how you look at it, Inflation premiums have either broken to multi-week highs or are very close to doing so! Note the how close the ETF TIP is from breaking out against the US 10 year. Also note that inflation protected bond funds have already broken out against the US 10 year. Which chart do we believe? Well take an eyeball average of both and it suggests that we have inflation premiums at multi-week highs.
This behavior suggests on should expect commodity prices to break to the upside over the coming days/weeks. We have found that the behavior within bond markets leads the behavior of commodity markets themselves for whatever reason, perhaps it relates to liquidity.
Our wealth creation portfolio is up 19.06% since the beginning of the year with approximately 40% of the volatility of the S&P 500. This portfolio is not leveraged.
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