Cotton, lumber, platinum, and copper are trading more or less at multi-week highs. We are not so specifically interested in trading cotton, lumber, platinum, and copper; rather we are more interested in the “subliminal” messages of multi-week highs in key industrial commodities. Like it or not we are unable to get away from these industrial commodities in our daily lives. The multi-week highs to us is more evidence of the developing bullish build up in commodities and inflationary pressures. How can one argue against economic growth and or inflation given the behavior of the charts below? If this behavior is not inflationary then we are missing something big time!
Of course the behavior of the four charts above are represented by the CRB Continuious Commodity Index (the old CRB Index which is an equally weighted index of 17 commodities). The CCI continues to etch higher quietly and in a seemingly controlled fashion. But wait there is more………look at what the CCI is doing in AUDs! If this behavior is not a leading indicator of economic growth/inflation what is?
There is a new trend developing in world financial markets right now…..and that appears to be a breakdown in the faith of governments. The ultimate price of years of excess is about to be paid – inflation.
Our wealth creation portfolio is up around 22.61% since the beginning of the year with approximately 40% of the volatility of the S&P 500. This portfolio is not leveraged.
Subscribers to our paid service are privy to our portfolio, sector weightings, and trade history.
We are not currently taking new subscribers. Please enter your email address if you would like to follow our commentary and be notified when we open our service for subscriptions.
