HIGHER YIELDS AND ENERGY MOVING TOGETHER — THIS IS THE INFLATIONARY GROWTH STORY WE'VE BEEN CALLING ALL YEAR! 🔥
Chicken or egg? Does energy drive yields up or do yields pull energy higher? DOESN'T MATTER — they're both screaming the same message: we're NOT in a deflationary slowdown, we're in an INFLATIONARY GROWTH environment!
I've been saying this for MONTHS — you do NOT want to be overweight bonds right now! Rates are higher for longer, inflation is sticky, and traditional fixed income is getting CRUSHED on a real return basis.
What SHOULD you own in your bond bucket? HARD ASSETS! REAL ASSETS! Commodities, energy names, infrastructure, managed futures — things that actually BENEFIT from inflation and rising nominal growth. Diversify your diversifiers!
This correlation chart says it all. When $USO and the 10-year are moving in lockstep like this, you better believe the macro backdrop favors REAL stuff over paper promises. BOOYAH!
Chicken or egg? Does energy drive yields up or do yields pull energy higher? DOESN'T MATTER — they're both screaming the same message: we're NOT in a deflationary slowdown, we're in an INFLATIONARY GROWTH environment!
I've been saying this for MONTHS — you do NOT want to be overweight bonds right now! Rates are higher for longer, inflation is sticky, and traditional fixed income is getting CRUSHED on a real return basis.
What SHOULD you own in your bond bucket? HARD ASSETS! REAL ASSETS! Commodities, energy names, infrastructure, managed futures — things that actually BENEFIT from inflation and rising nominal growth. Diversify your diversifiers!
This correlation chart says it all. When $USO and the 10-year are moving in lockstep like this, you better believe the macro backdrop favors REAL stuff over paper promises. BOOYAH!