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.

Marc Faber on Korea, Natural Gas, Hyperinflation

Interview with the Korea Times. He touches on the usual, however has some interesting thoughts on natural gas:

As for investors interested in commodities, the Swiss-born investment advisor said natural gas would be his best pick, adding crude oil prices will undergo corrections in the coming months. ``Natural gas is cheap, compared to crude oil. I would buy natural gas. Oil was traded as low as $32 per barrel late last year but has jumped to $72. From a pure demand and supply perspective, the demand from both advanced and emerging economies is not strong. But in the long-term, prices will be much higher than now,'' he said.

I'll go on record and say I wouldn't be buying natural gas (and certainly not UNG) until we get through September/October and see that containment isn't an issue.