04Mar10:36 amEST

Real Assets Get the Biddies

Play stupid monetary games. Win stupid monetary prizes. 

Although The Fed's historically accommodative policies since the global financial crisis have been lauded frequently over the years for having spread prosperity and apparently saved the world, we seem to be in the (still) early stages of now seeing the true consequences of such irresponsible and clueless behavior. 

Case in point: A broad market selloff in equities as all major indices continue to flounder below their respective 200-day moving averages, unable to sustain any type of bounce, all the while real assets (commodities) continue to surge and inflict pain on people around the world due to higher costs of merely existing on this planet. 

The very notion that this will all reverse soon because of a sentiment survey, or because "FB is cheap," seems to be bordering on the absurd at this point especially since we are nowhere close to oversold conditions on the indices, nor has the VIX reached ridiculous nosebleed levels where fading it may be correct. Furthermore, sentiment in many parts of social media and financial news television still seems more infatuated with nailing the big bottom and catching a huge rally rather than respecting the deteriorating price action in the Nasdaq, for example.

And all of this is happening as The Fed falls further behind the inflation curve on a daily basis.

Until they panic and change course by tightening aggressively and shrinking their balance sheet, the green light is likely on for virtually all commodities to keep surging higher, perhaps even mirroring the GME squeeze last year. 

On that note, palladium (PALL ETF) is a commodity we are playing, and natural gas, below on its UNG ETF daily chart, may be in play, too, to move with wheat and oil higher in the environment. 

Eventually, "evil speculators" like us will become public scapegoats for inflation. But, let's make no mistake about, The Fed's persistent miscalculation and hubris to not acknowledge the error in its ways is the proximate cause of how rampant these market dislocations are, and may become yet. 

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