Is Inflation On The Horizon? Watch This Market Chart!

In Thursday’s speech from Jackson Hole, Federal Reserve Chair Jay Powell said he is targeting inflation.

Perhaps the market is seeing something similar. This prompts today’s question (and chart):

Are the markets about to send a new message regarding inflation?

Today’s chart “2-pack” highlights a couple of key inflation indicators: The Equal Weight Commodity Index and the 10-Year US Treasury Bond Yield.

As you can see, commodities and yields have been in a downtrend for several years – the Commodity Index is marked by each (1).

But both have recently perked up.

If commodities and yields breakout at each point (2) and (3), odds increase a new message is being sent. Stay tuned!

Equal-Weighted Commodities Index “monthly” Chart

equal weight commodity index trading higher forecast image august 28

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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