IY IYM iShares U.S. Basic Materials ETF Loading... : Bullish and Bearish Analyst Opinions

1. THE FACT: The U.S. basic materials ETF (IYM) is cited as "exhibit A" for why longer-term interest rates in the U.S. are heading higher, due to inflation being "deeply embedded into U.S. economy." 2. THE BRIDGE: Strong performance or outlook for basic materials suggests underlying inflationary pressures, which in turn supports the thesis of rising longer-term interest rates. This implies a positive outlook for IYM itself, or at least that it's a leading indicator for inflation/rates. 3. THE VERDICT: Long basic materials (IYM) as a play on embedded inflation and rising longer-term interest rates.