by Mike Gleason
In this first trading week of 2021, a new investment theme appears to be emerging. That theme can be summed up in a single word – reflation.
A resurgence of inflation is being priced into asset classes across the board. Stocks are rallying to new records. Shares of Tesla and alternative energy companies are going to the moon. Marijuana stocks are suddenly back in vogue. Bitcoin is going bonkers.
Crude oil, copper, and other commodities also started to break out this week. But precious metals markets pulled back sharply this morning on the heels of a bad jobs report., meaning these markets require more time to work their way back up to last year’s highs.
President-elect Joe Biden is vowing to make good on President Donald Trump’s promise of $2,000 stimulus checks to most Americans. Biden also intends to push a $4 trillion “Build Back Better” agenda centered on “green” infrastructure programs.