The Dollar Is Screaming Inflation — And Hard Assets Are Confirming It

The U.S. Dollar’s multi-year lows signal a shift toward an inflationary regime as investors pivot to hard assets.

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Are you prepared for another round of inflation? Because the financial system is signaling that it’s coming.  

The USD continues to trade near its four-year lows. This is an incredible situation when you consider that the War in Iran should have ignited a “flight to safety” move into U.S. dollars.

It didn’t.

Despite the War in Iran, the private credit markets crumbling, and more, the USD cannot catch a bid. This is a major signal that we are moving into a weak-USD regime, which is inflationary.

We get confirmation of the coming inflationary storm from numerous hard assets.

Hard assets/ natural resources are famous for being inflation hedges. The reason for this is that these assets cannot be “printed” into existence. So, when you see them ripping higher, it’s usually a major signal that inflation is coming as investors are fleeing paper assets for asset that cannot be devalued.

With that in mind, please note that copper prices have just hit all-time highs.

The same is true of uranium stocks (URA).

Even agricultural commodities (DBA) have just hit 10-year highs. This chart is the most worrisome of the bunch because the Fed’s own research indicates that food inflation is the single best predictor or future inflation.

Put simply, everywhere you look, the financial system is signaling a major shift is underway. These kinds of signals only come once in a decade, so it’s wise to take advantage of them when they do!

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