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Feb 02
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AVOID
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Bob Elliott
Substack author, Nonconsensus
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Gold is up a ton, Copper has surged, and Brent is up a tad, indicating that the easy policy flow is already largely priced into these hard assets. They showed the highest beta in the recent "mania." The author explicitly states that "it isn’t the metals" where Easy Street momentum is modestly priced in, implying they are already fully priced for this theme. Avoid or reduce exposure to metals, as their recent run-up has likely already discounted the expected easy policy, and new momentum based on this theme is likely elsewhere. Unexpected geopolitical events, supply shocks, or higher-than-expected inflation could drive further demand for metals regardless of monetary policy pricing. |
Nonconsensus
Underpricing Easy Street Policy
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