If the yield curve is steepening under inflationary pressure (as it is today) your attention is demanded as an investor because 2020 into 2021 is much different than the long phase from 2012 into 2019 (where the flattening curve finally terminated in August). It is no coincidence that a world full of commodities and resources are having their day in the sun.
In other words, the inflation trades live because the yield curve, rising nominal yields and inflation expectations gauges say they do. So party on inflationary Garth and inflationary Wayne. Also keep in mind that the yield curve can steepen under stagflationary or deflationary pressure. Indeed, one could argue that the Stag is what’s in play now.
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