The Deflation Trend
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Deflation simply means falling prices. The 4-pack below reflects that the bond players believe in the deflation theme as the yield on the 10-year note breaks below the 2009 and 2011 lows.
Speaking of deflation and falling prices, the CRB has now broken below last summer's lows, the CRX is at last summer's lows, and Crude Oil finds itself on key rising support.
From a portfolio construction standpoint, the deflation/falling-price theme continues to suggest that protection of capital is a key strategy for a variety of asset classes.
(c) Kimble Charting Solutions
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