The Trump Reflation Trade is Fizzling

Steel stocks began selling off hard last week:


X (Daily)


And the selling spread to integrated commodity behemoths such as BHP and Glencore today:


GLEN.L (Daily)


While it’s possible that this market action could be limited to the steel and iron ore sectors the recent decline in the 10-year Treasury note yield confirms that this sell-off has a much more macro growth slowdown flavor to it:


10-year Treasury Yield (Daily)


So far US equities have held up fairly well with reduced Fed rate hike expectations probably helping to cushion some of the reduced growth outlook the above charts signal. This is a theme to keep an eye on as the ‘Trump reflation trade’ is already in serious jeopardy of fizzling before we even got to know it.


DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on for important risk disclosures. It’s your money and your responsibility.