Inflation Concerns Easing as Commodities Fall, Bonds Rise
2022.12.13 11:37
The financial markets have been volatile this year, to say the least. And much of the volatility has been tied to inflationary concerns and rising via the Federal Reserve.
That said, we’ve come to a point where appears to be easing. And that should be music to the ears of everyday consumers.
Today, we share a chart highlighting the price of commodities versus bonds to underscore the potential for lower prices going forward.
GSG, TLT, Junk Bonds Daily Chart
As you can see, the price of commodities—via iShares S&P GSCI Commodity-Indexed Trust (NYSE:)—is dropping and recently broke below its 100-day moving average. At the same time, government bonds and junk bonds are moving higher and breaking above the 100-day moving average.
Taken together, it appears that inflation is chilling here. And if so, this could be a boon for consumers. Stay tuned.
