Something truly massive happened in early 2017.
That "something" was the market shifted from deflation towards an inflationary outlook.
If you don't believe me, you can see for yourself.
Inflation expectations broke out of a multi-year downtrend. Not only that, but they have since continued higher, bouncing of support.
Investing in the markets is like playing poker, and this was a massive "tell" that the market had changed.
The next big "tell" came when yields on the 10-Year Treasury broke out of a downtrend.
As I've explained time and again, bonds trade based on inflation expectations among other things. So to see yields rising like this, breaking a multi-year downtrend, "tells" us that the bond market is adjusting to the future threat of inflation.
Put simply, we are getting numerous signs that the markets are shifting into a new major trend. And when I saw "major" I mean MAJOR.
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