Broken Clock

You can file this under broken clock because this is the third time I am calling for a hot CPI. I read daily about rising prices and cannot help but think that eventually it will find its way into government figures. If the CPI comes in hot it might lead to a bond rally as people look for an end to QE. QE II has been bad for long term treasuries so the knee jerk reaction would probably be to rally treasuries. I remain long TLT.

1 comment:

Anonymous said...

You assume s&p's are about fundamentals. Who said in this QE driven market that is true?