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Investment expert shares three ETFs to take advantage of the reflation trading trend.

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3 ETFs to Play the ??Reflation Trade’

Investment expert shares three ETFs to take advantage of the reflation trading trend.

For much of the past two months, the equity market has been engaged in a bout of flirtation with what I??ve called the ??reflation trade.?

During reflationary periods, bond yields rise as they reflect investor expectations for future economic growth and inflation.

Also during reflation, we tend to see market sectors linked to economic growth, i.e. banks and financials, industrials, consumer discretionary and small-caps, make a concerted move to the upside.

We saw the beginnings of the reflation trade in September, as 10-year bond yields surged, the U.S. dollar rose against rival foreign currencies and banks, financials and small caps rose.

We know that by looking at two key charts — the CBOE 10-Year US Treasury Yield ($TNX) and the KBW Bank Index ($BKX).

Click here to read the rest of the article, “3 ETFs to Play the ??Reflation Trade??.

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Written By

Jim Woods is a freelance financial journalist specializing in the markets and the economy. He champions the cause of liberty from a secured location deep inside the Golden State.

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archive

3 ETFs to Play the ‘Reflation Trade’

For much of the past two months, the equity market has been engaged in a bout of flirtation with what I’ve called the “reflation trade.”

During reflationary periods, bond yields rise as they reflect investor expectations for future economic growth and inflation.

Also during reflation, we tend to see market sectors linked to economic growth, i.e. banks and financials, industrials, consumer discretionary and small-caps, make a concerted move to the upside.

We saw the beginnings of the reflation trade in September, as 10-year bond yields surged, the U.S. dollar rose against rival foreign currencies and banks, financials and small caps rose.

We know that by looking at two key charts — the CBOE 10-Year US Treasury Yield ($TNX) and the KBW Bank Index ($BKX).

Click here to read the rest of the article, “3 ETFs to Play the ‘Reflation Trade’.

Newsletter Signup.

Sign up to the Human Events newsletter

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