Is inflation taking hold? Some of the investors are betting on it. If there is inflation, it can mark a major shift of the financial market. For a long time, the economists say that deflation should always be the main concern but not the inflation. But I bet that the two of them should at all times be equally significant. In most cases, when the sticks go down there is a likelihood that the real estate will be down, commodities will be down, the bond will be down and also all the emerging markets will also be down. That will be a real and a true deflation.

Investors betting on the inflation was just about to break out because we have footed it in the wrong way over many years. When the rates are rising, they will also tend to jump. If investors decide on taking some of their profits in gold more money will begin tom pile and hence there will be relocating of inflationary trades. You should always keep an eye on it. To some of them it is a nightmare. Inflation is a common thing that should not worry you too much. Inflation will never be permanent at any case. From time to time, inflation comes and finally out after a period of time.

Many people are confusing the raising of the rise of commodities price as inflation but that is wrong. Rising of the price of the commodities does not necessarily mean that that there is inflation. The reason you can see the rise and lowering of the price is due to the varying supply and demand of the commodities. In the world there are no enough resources to provide all that will be able to feed the world without any struggle.

When there is plentiful, the prices of the commodities will go down and the vice versa will happen. Today, the resources that people need most are not found in plenty and the American labor and U.S. dollar is found in plenty. This is the reason as to why there is the rising and the falling of commodities hence people referring to it as inflation.

One of the major economists in Deutsche Bank thinks that there are very many investors who are not aware of stakes. He recently said:

” There are more and more signs of inflation everywhere... and the market continues to ignore what it means for the Fed and for the levels of rates, and fixed income more broadly”

But is his statement true? I tend to agree with him. After the end of any financial crisis, the immediate effect that will come up is the inflation season.

Many people all around the world are all shocked when they hear of the term inflation. To some of them it is a nightmare. Inflation is a common thing that should not worry you too much.

Inflation will never be permanent at any case. From time to time, inflation comes and finally out after a period of time. But I bet that the two of them should at all times be equally significant. In most cases, when the sticks go down there is a likelihood that the real estate will be down, commodities will be down, the bond will be down and also all the emerging markets will also be down. Over past few years, we have been in the long treasuries and the short treasuries with use of various mutual funds and the ETF’s.

After the discussion is come to a stop at the interest rates and how they are moving forward. The treasury rates for a period of ten years the treasuries fell to 2% late in the year 2008. By the end month of June, as a result of the risky appetite finally returned to the market and the rates went up to 4%. Currently it has gone down and fallen up to 3%. The main thing that we should always be concerned about is the U.S dollar.

If you are in the market, you definitely now the ETFs just like the Pro-shares Ultra shorts Lehman which has been there for more than 20 years. When the rates are rising, they will also tend to jump. If investors decide on taking some of their profits in gold more money will begin tom pile and hence there will be relocating of inflationary trades. You should always keep an eye on it.