Keppel DC REIT Distributions Drop 13.7% and More Asia Real Estate Headlines
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The challenges of what was once Asia’s hottest listed trust lead today’s
roundup of real estate headlines, with Keppel DC REIT announcing a dip in
distri...
2021-06-01
Waiting For Regime Change
I have been in the deflation/disinflation camp since before 2008. The positive correlation between long-bonds and gold was afeature of this regime, as was the positive correlation between tech and gold, and even yen and gold. A flip to an inflation regime, of negative rates due to high inflation, should see gold move opposite to long-bonds, tech and potentially the yen since Japan is a commodity importer. The correlation below doesn't indicate a regime change is underway because 1 month is too short a time period, but if gold continues moving opposite to these assets I will take it as a signal that we're finally in an inflation regime. When gold is rising with the consumer price index (or whatever you want to measure inflation with) and rising with interest rates, the script will have flipped.
Labels:
deflation,
FXY,
GLD,
gold,
gold miners,
inflation,
interest rates,
TLT,
treasuries,
yen
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