My latest post for Alpha Baskets looks at some interesting comments in the annual Barron’s Roundtable.
From the post;
He believes rates will head higher and that inflation is coming back after a long deflationary run. Before the financial crisis, commodities were a good hold for much of the 2000’s. Not so after the crisis until just a few months ago as industrial commodities have rallied hard. Commodities tend to not do well in deflationary environments but there is an argument for gold as a deflation hedge from the context of gold being a currency that goes up against deflating currencies. Gold of course did very well in the early days after the crisis into its peak in 2011 but has mostly struggled since. Arguably gold as a deflation hedge wasn’t put to the test as we did not have any sort of catastrophic, deflationary outcome, more like heavier deflationary pressure than we’d had in a long, long time.
Please click through to read the entire post.
Capitol Reef National Park