Earlier we talked about the corn market crash, but really the story is in wheat.
Have you seen it? We’re talking prices not seen since last August.
Between this and the decline in gas prices, it’s inevitable that all of the official inflation measures are going to trend lower in the coming months. It will be a while, most likely, before we see anything that looks outright deflationary, but it’s clear that there’s been a major trend-break on this front, even as equities hold up surprisingly well.
Here’s wheat via FInViz:
Here’s another simple visualisation: It shows the SPY (S&P 500 ETF) vs. the DBA (agriculture ETF). Long-story short. Your stock portfolio is buying a lot more bread than it was a few months ago.