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Still more bearish commodity signals - MacroBusiness


MacroBusiness
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I love Bear Traps Report as a contrarian signal. Just do the opposite on commodities:
Complacency is off the charts. Per a BofA survey released Friday,nearly 72% of investors believe inflation is transitory–a decade of conditioning will do the trick every time. This is a startling statistic and the oxygen behind the recent growth-tech sector revival in U.S. equities. Our “Cobra Effect” thesis laid out last Summer 2020 is about 50% played out while the chef is in the kitchen putting the finishing touches on the main course. Next, the plates, candles and table cloth will abruptly be dumped onto the lab of Jay Powelĺs Federal Reserve. The grand-daddy of unintended consequences hasn’t joined us yet. The foundation of transitory inflation in the 2010-2020 period was forged on the back of a powerless labor market. This time around 7.5 million Americans are still being compensated and incentivized NOT to rejoin the labor ....

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