The market believes inflation is “under control”… while commodity producers are exploding higher.
The market says: inflation is dead.
Commodity producers say: that’s a lie.
The white line: U.S. 5Y5Y inflation expectations have been declining for years and now sit around 2.30%.
The red line: the global commodity producer index is at 8,113, a new high.
For the past 20 years, the two moved together.
Today, they have completely decoupled.
Markets are pricing in a calm world.
Commodities are pricing in a world of scarcity and rising input costs.
One of them is going to be very wrong.
And as we’ve been saying for more than two years:
Own real assets… or pay the price in cash.
The market says: inflation is dead.
Commodity producers say: that’s a lie.
The white line: U.S. 5Y5Y inflation expectations have been declining for years and now sit around 2.30%.
The red line: the global commodity producer index is at 8,113, a new high.
For the past 20 years, the two moved together.
Today, they have completely decoupled.
Markets are pricing in a calm world.
Commodities are pricing in a world of scarcity and rising input costs.
One of them is going to be very wrong.
And as we’ve been saying for more than two years:
Own real assets… or pay the price in cash.
