When it comes to inflation expectations, the Treasury Inflation-Protected Securities vs the US Treasury Bonds ratio is one of the best ways to measure it.
When investors anticipate rising prices for goods, they hedge by favoring TIPS over traditional bonds.
The TIP/IEF ratio is ripping to its highest level in almost three years.
It’s no coincidence that the Bloomberg Commodity Index $DJP looks just like it.
If we’re heading into another inflationary period, then commodities, energy, metals-related equities, natural resources, and international markets should be top of mind.
There are many ways to take advantage of this trend, and options are one of them.
We’ve been on it through Breakout Multiplier for a while now. Steve’s all over this move, and so am I.
