Potential Inflation Trades
Tuesday the Fed came out and said that they will not be expanding their quantitative easing operations. They claim that things are looking good enough that they do not need to do more. Of course we also had a really bad GDP number and long term rates have been climbing ever since the original announcement. If the Fed is right and things are improving then we can expect to see some fairly strong inflation coming up in the next few months out to about two years. Essentially at some point relatively soon we are going to be in a very inflationary environment. Here are two sectors that we think will benefit from inflation, and will likely do well even if inflation is relatively flat.
MOO-Agribusiness ETF
OIH-Oil Service HOLDR
Happy Trading,
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