By Brad Zigler
The past 12 months have been pretty good for financial assets. Blue chips in the S&P 500 Composite have gained 15.5 percent since March 30 last year. Domestic bonds, too, have appreciated. Before coupons, the Barclays Capital Aggregate Bond Index (AGG) has risen 5.2 percent.
The advances in physical assets?the stuff that's supposed to provide an inflation hedge?have been even more dramatic. The S&P/Goldman Sachs Commodity Index (GSC) is 21.1 percent higher than it was a year ago. Oil is up 26.9 percent and gold's 27.9 percent is above its year-ago price.
That hedge business is becoming more important as investors smell the aroma of inflation wafting from the Consumer Price Index and other metrics.
Our Monetary Inflation Index (the 365-day rate) returned to positive territory back in January, after an eight month-sojourn into disinflation.
U.S. Inflation Metrics
Inflation is corrosive to financial assets, and in times
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