And you like iron ore:
And anything else that will hurt if you drop it on your foot.
In contrast, the fluff with fluffy subjective valuations is getting hammered:
I know I’m throwing a bunch of charts around, but there’s actually something to this. If you buy Amazon, it is an implicit deflation bet. You are betting on the deflationary forces of technology, that prices will continue lower.
Since 2011, Amazon (and all that stuff) has been going higher.
Since 2011, metals and commodities and EM have been going lower.
Suddenly, three weeks ago… these trends abruptly reversed.
My thesis is that the deflation trade is over. The inflation trade has just begun.
Which means: don’t buy AMZN, and don’t short gold. This is the first inning.
