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Two Ways: Wagering on Inflation


Strengthen your portfolio in good times and bad.

Black Swan's Next Big Bet

Black Swan Trader Mark Spitznagel scored big last year betting that volatility would return to the markets. Now, he's making a large wager that inflation will surge because of this year's stimulus efforts, according to The Wall Street Journal.

Spitznagel's new fund debuts in July and will place bets on assets expected to benefit from a jump in prices including agriculture, energy and precious metals. Returns on his previous funds soared to triple digits sending assets to his firm, Universal Investments, from $300 million to $6 billion.

See Professor James Anderson's related column, Trouble on the Horizon for Wheat.

From the Bull Pen: The lack of inflation fears currently is good news for those betting on this strategy. Professor Anderson mentioned the agriculture fund (DBA). A sell stop can be set below $26-$25.75 in the near term.

From the Bear Cave: For bond bears, watch for what the Fed has to say after the FOMC meeting next week. But the vehicle of choice can be the Ultrashort 20+ year Treasury ETF (TBT), with a 2 point sell stop.

Quick Check Around the World

Asian trading closed with the Hang Seng -0.45%, India -2.91%, Shanghai 1.23%, Nikkei 0.90%, and Taiwan -0.40%.

Glancing towards Europe, we see the FTSE -1.17%, CAC -1.22%, DAX -1.14%

As of 8:15 AM EST, S&P Futures are trading -2.7 to 905.10 and Nasdaq futures are +1.2 to 1445.50.

A Look at Commodities

Over in commodities, crude oil is trading -0.40 to 70.07 while gold is -2.00 at 930.20 this morning. Silver is -8.500 to 14.04 and copper -2.20 to 223.35.

The dollar index is +0.020 to 81.1500.

On the Radar


08:30 Core CPI 0.1% cons
08:30 CPI -0.9% cons
10:35 Crude Oil Inventories

Click here for the full trading radar.

Let's get over this hump and head to Toddstock! Good luck!
No positions in stocks mentioned.

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