Tuesday, July 21, 2009

5 Non-Traditional Inflation Indicators

Nice article from seeking alpha.

We essentially use five indicators:

  1. Emerging market small caps vs. developed market small caps (EWX vs. GWX)
  2. Commodities in general relative to gold (CRB vs. GLD)
  3. Non US inflation protected Treasuries vs. ex US unprotected Treasuries (WIP vs. BWX)
  4. Commodity stocks vs. the broad US stock market (CRX vs. VTI)
  5. Commodities vs. US 30 year Treasuries (CRB vs. USB)

...To us the market is sending very strong signals that world growth and inflation is picking up. We are not above the market (and have seen very few cases of anyone who has consistently outperformed the market) that is why we follow it.