Tag Archives: deflation
The Gold:Oil Ratio Is Speaking
As a believer in the power of diversification and inflation protection a basket of commodities can provide in a passive index framework, it is hard to grasp how much investors love oil and gold. It must be that oil is the biggest, most economically significant commodity, and gold is the shiniest, most prized metal – arguably a currency in its…
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Fear of Falling Prices
Anxiety over deflation is wide-spread and increasing. The New York Times lead editorial on Sunday warned that weakening commodity prices may be a harbinger deflation or a hint of economic decline. Despite a few contrary voices, both policy makers and investors seem concerned. Are the fears misplaced? Or would deflation be a large step backward?…
- Categories Blitzer's Insights, Equities, Fixed Income, Strategy
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Deflation, Debt and Disaster
Central Banks persist in fighting inflation. The Fed is tapering and talking about tighter money. The European Central Bank won’t cut interest rates. Only in Japan, where the Prime Minister is pushing the Bank of Japan is there a hint of a different approach. Inflation rates in most developed markets are below central bank targets…
- Categories Blitzer's Insights, Fixed Income, Strategy
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CPI Rises in May: How much inflation protection have commodities provided?
After two months of deflation, headline CPI (Consumer Price Index) gained 0.1% in May, marking its second positive reading in at least the past seven months. Over the past 12 months, CPI inflation is up 1.4%, accelerating from April’s 1.1% reading. http://www.bls.gov/news.release/cpi.nr0.htm Historically, commodities as an asset class have had positive correlation to inflation. In the…
- Categories Commodities
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- Commodities
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