>>21164835>As for commodities, according to the CPI last month, every commodity except food and cameras are DEFLATING.check out pic related
this trade is also very crowded / universally agreed upon by big money (global recession leading to commodity prices dropping)
when the Fed cuts rates, the dollar will fall relative to other currencies, commodities are priced in dollars, commodities will have pressure to the upside due to the dollar falling
Financial conditions will loosen, also causing commodities to have pressure to the upside
If you have a super crowded trade (short commodities) and you have the dollar falling, financial conditions loosening, there will (eventually) be a pop & unwind of these massive shorts - this will cause inflation to return and or remain sticky several months after the first cut
