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Watching Consumer vs Commodity and IEDI vs USO

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A quick look at correlations of our recommendations shows our Consumer recommendation (IEDI) has a negative correlation to our Commodity recommendation (USO). The negative correlation makes sense as higher commodity prices and inflation negatively impact consumers and consumer-related companies. We can watch Consumer vs Commodity sector trends to get a read on inflation trends. The bottom line is that rising/falling inflation expectations may force us to close one of these current recommendations.

Ned Davis Research | Thematic | On the Radar | Weekly

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