Wednesday, March 13, 2013

Inflation Ignored

We got a big boost in ES because of a big retail sales beat.  Most of these government statistics have huge error readings so you can't take the numbers too seriously.  Also, inflation is being largely ignored here in the sales numbers.  Gasoline prices have gone up steadily over the past several months, and rents are increasing steadily. 

Since 2007, crude oil and corn have gone up over 50%, gold up over 100%, and rents are definitely higher.  Yet inflation is controlled.  The CPI numbers are a joke, which makes the CPI-based TIPs bonds a joke. 

If I was forced to make a trade where I had to hold for 5 years, I would choose gold or crude oil over stocks or bonds.  It would be an easy choice.

The low vol grind higher continues, opex week provides protection for bulls since we're near all time highs.  Don't fight this bull. 

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