It’s been my theory that the stock
market, and especially bond market have been storing inflation ever
since May of 2011. Once that inflation starts to leak it’s going to look
for undervalued sectors.
It’s pretty clear when looking at a comparison
chart of bonds and energy that inflation started leaking almost
immediately once the bond market topped. The recent escalation in the
bond market sell off materialized almost instantly as a sharp spike in
energy prices. If you think this is bad wait until the stock market
starts to leak inflation also. This is how an inflationary spike, like
we saw in 2008, begins.