Long-term yields are up again this morning. We have noted that to be in line with an ongoing inflation/reflation bounce, most recently yesterday.
Also reference Friday’s Copper/Gold Ratio Would Change the Macro
The Silver/Gold ratio is still bouncing from the sharp drop in late September.
The US dollar is tanking again, which puts me on the verge of covering the Euro short hedge (EUO).
Importantly for the global reflation trades, copper continues to rise vs. gold. Copper/Gold is hitting a new recovery high this morning in pre-market. Doctor Copper rising vs. the old Monetary Professor indicates that an inflationary 2021, possibly with pro-cyclical aspects and the rising prices to go with it, is still in play. This looks a lot like earlier in the year when we caught Canada’s junior TSX-V breaking out in ratio to the senior TSX.
