Commodities guide maintain teach a pretty practiced proxy for persuasion regarding the prospects for global economical recovery, every bit growth tin last expected to generate increased need for oil, industrial metals, together with nutrient stuffs. After breaking out of the base of operations extending from Dec through April, commodities (DBC, above) guide maintain pulled dorsum into that base, every bit investors guide maintain renewed questions regarding growth prospects. With that, inflation themes guide maintain taken a dorsum topographic point to deflationary concerns, strengthening the U.S. of A. dollar together with sending Treasury prices higher (and yields lower).
For investors, zippo is to a greater extent than of import than scoping out the prospects for inflation vs. deflation. The movements of the diverse property classes are a sort of voting machinery regarding those prospects and, thence far, are voting for continued economical weakness.
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