Commodities and Inflation Expectations

The CRB index is in a minor disconnect from inflation expectations (RINF)

It’s a disconnect on the short-term, at least. If/as the reflation continues CRB could have some catching up to do. CRB has been a near perfect side car to the inflation expectations (IE) cycle until recently. Crude oil’s volatility of late has contributed to the ruptured connection, along with base metals getting roughed up.

The alternative view is that CRB sees IE as blowing off and is taking cover. But since CRB’s trend is up that is the favored lean for both it and IE at this time.

For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.

Testimonials