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XE Currency Blog

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By HaleStewart February 12, 2015 8:15 am
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HaleStewart Posts: 792
The Remarkable Depth and Breadth of Deflation

Above are three charts of four ETFs: the DBA, which tracks agricultural commodities, the DBBs which track industrial metals, DBE, which tracks energy and DPP which tracks precious metals.  The top chart is for three years, the middle is for two and the bottom is for one.

On the three year chart, there are only a few months of positive returns from the DBAs, DBEs and DPP. 

On the two year chart, there are only a few months of positive returns, this time from the DBAs and DBBs

On the one year chart, both the DBAs and DBBs spiked earlier in the year, but both have been slowly moving lower since; all sectors are now printing negative returns.

Regardless of your time horizon, there just isn't any commodity inflation, period.

Hale Stewart is a former bond broker who has been writing about economics and financial markets since 2006 on the Bonddad Blog.  He is also a tax attorney with a domestic and international practice while also forming and managing captive insurance companies for US companies.   You can follow him on twitter at:@captivelawyer  

 

 

 

 

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