In a rising inflation environment - resources/metals commodities is the place to be..
As inflation rises, interest rates rise which in turn is bad for business. Commodities/metals are like pigs in mud in a rising inflations environment. the CRB index is the broadest measure of inflation and according to that index inflation is rampant...
I remember Darryl Guppy said once, 'the uptrend will trend as long as the downtrend'. In other words, since the metal mkt has been in a 20 yr bear mkt a high inflationary environment will catapult metals to a 20 yr bull mkt.. maybe, maybe not.. but in a rising inflationary environment I will definitely not invest in equities blindly! It will be a stockpickers mkt and growth is all the rage..
