Striking a Balance: Growth, and the Inflationary Surge

"They love the taste of blood-Now I don't know what that means-But I know that I mean it-Maybe they're as evil as they seem-Or maybe I only look out the window when it's scenic." Atmosphere

While everyone is focused on the election, there is a new signal that I have been talking about all year long. I’ve been positioning for inflation and the reflation trade to kick in by year-end, seeing it as a prime opportunity.

Why? This is where the big money can be made.

Throughout the summer, I watched trends strengthen beneath the surface. Gold surged, while the dollar stayed range-bound.

These movements made me think of how a commodity rally starts.

Now, imagine if the dollar were to weaken further. With the Fed cutting rates, inflation ticking higher, and clear signs of a reflationary market, it’s a serious question to consider.

The dollar finally broke out of its triangle pattern at the start of August, which was the first major signal for this shift.

After hitting a low around 100 on the DXY then it saw a sharp rally back to that level, only for it to bounce off and start moving lower.