Inflation Runs Rampant Only In The Imagination of Investors

Inflation Runs Rampant Only In The Imagination of Investors

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

Otherwise, enjoy the column!

Subscribe to the Monster Stock Market Commentary to get the Daily Monster Market Commentary and join the 2,935 subscribers getting it for FREE!

[widget id=”text-28″]

[widget id=”text-23″]

Inflation Runs Rampant Only In The Imagination of Investors

[widget id=”text-19″]

The S&P 500 finished the day lower by about 70 bps, off the lows, when it was down about 1%. Nothing earth shaking but enough to get everyone talking about how rising rates are going to kill the market, and inflation once again is rearing its ugly head. So just how much inflation is there? I can think of one commodity that is going up, and that is apparent Oil. Which, I have shown you time and time again,  how it tight the correlation with the CPI and PPI is.

Yes, No, Maybe So?

[widget id=”text-22″]


Some critical industrial metals like copper, have gone nowhere over the past year. To, to be honest, the chart doesn’t look so hot and looks like it may be heading lower. Not so good for Freeport (FCX)


[widget id=”wordads_sidebar_widget-41″]

Iron Ore

Iron ore is a critical ingreident in steel.  Again, not so inflationary, either. But that setup looks nice, for a rise at some point, if the dollar doesn’t get too strong. Maybe a positive for Vale, Rio, and BHP.

iron ore

[widget id=”text-21″]


Then off course there is gold.



Subscribe to the MCM Stock Market Commentary to get it Daily and join the 2,935 subscribers getting it for FREE!

Must be coffee? That has to be a good sign for SBUX, right?


[widget id=”text-23″]


What about Sugar? Definetly not.


[widget id=”text-21″]


Orange Juice? Oh there is a little bit, is Orange Juice to blame for the rapid inflation? Does Coca-Cola (KO) still own Tropicana?



Lumber now that is going up.  Not good for the homebuilders like PHM.


[widget id=”text-21″]


Cotton has a little bit of inflation. Yeah not so good for Haines, (HBI)



Of course, there is the PCE which is at 2.6 percent! Strange thing here, is that it hasn’t change since the first quarter of 2016.


Hourly wages haven’t accerlated since 2016!


Even housing costs have remained relatively stable.

I mean do any of these charts speak of rampant inflationary forces taking place in the economy? No, and in some cases, things are getting cheaper! Maybe, I need to do that thing; you know where you remove the scale, and then zoom all the way in and get real close, to make a ten bps rise look monstrous. But, no. That is no what we aim to do here.

So when you find some inflation someone please let me know!




Just $200 Per Year – Get Your Free 2 Week Trial

Recent Videos:

More Positive Signs Develop, Plus Sub Mailbag

The Setup In Stocks Continues To Improve

Getting Long Apple

A Rise Back To 2,800 On The S&P Is In The Works

Free Articles Written By Mike:

AMD’s Stock May Rebound by 12% on Better Outlook

Qualcomm Shares Seen Rising 9% on NXP Deal

Apple Traders Bet Stock Will Rise 9% to New Record

Citigroup’s Stock May Rebound by 10%

Micron May Break Out Leading to a 15% Rise

4 Biotech Stocks Set to Rise By 14% or More

Join our 2,935 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe

Photo credit via Flickr

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.

© 2018 Mott Capital Management, LLC.  Use, publication or reproduction in any media prohibited without the permission of the copyright holder.

Tags: #sp500 #oil #inflation #yields #copper #ironore #steel #sugar #coffee

Comments are closed.