Loading ...Inflation expectation Proshare ETF RINF
Further to Alex33 post.
Quote from Zero Hedge post here:
“If Edwards is correct about the locus of the next mega-bubble, it is very bad news for risk assets as the “global deflationary bust will wreak havoc with financial markets”, prompting Edwards to ask a rhetorical question:”
Below are two charts inverse RINF and a combo chart RINF vs inverse commodity to gold ratio chart. Both charts signal Deflationary event is in motion since 2018.
TSI Blog:
“On this chart the commodity/gold ratio (as opposed to the gold/commodity ratio) is compared to the ProShares Inflation Expectations ETF (RINF). The correlation clearly is strong, with commodities consistently outperforming gold when inflation expectations are rising and underperforming gold when inflation expectations are falling.
An implication of the above charts is that if inflation expectations are close to an intermediate-term bottom then the financial world is close to the start of a 6-12 month period during which the industrial metals perform better than gold. Alternatively, a further decline in inflation expectations (increasing fear of deflation) would lead to additional relative strength in gold.”
Gold and Inflation Expectation
You make me think of a comment I saw last night on zerohedge on an article about the declining copper prices.
Someone remarked that once the decline in the reported prices stops there might be quite the reversal. It could prove pretty shocking.
I am reluctant to write about “inflation” and “deflation” since different people use the terms differently, since different types of prices get averaged together in such a way that useful details are missed, and so forth.
Nevertheless I remember about a decade ago people were suspecting that there would be pronounced deflation followed by hyperinflation. I don’t think it occurred, at least not in the US. Nevertheless I wonder whether with respect to prices of many different things whether many people — some sophisticates perhaps even more than normal people — might be surprised by a sudden reversal in prices.
I personally would not think of trying to call any bottoms. I do own a couple of Ni stocks (Ni does not seem to be going down), and with some concern come Cu and Zn stocks (1-2 of which are actually holding up on the basis of company specific stuff).
Inverse this verses ratio of the inverse of that ?
Too much for my pay grade
My head hurts
I disagree !
I have a chart which I showed here recently that shows Gold vs Commodities was very strong in the 70s….extreme INFLATION