The reflation trade picked up the MO today with big winners among commodity and precious metal stocks.
Dollar weakness,10 year treasuries hitting 3.2%, and China’s appetite for raw materials and energy are drawing investors to copper,silver,titanium and energy raw materials. Coal has been on a tear. Risk appetite has boosted the Euro and other currencies; corporate bonds and real estate are back with good momentum.
Among the winners are gold stocks like AUY and the ETF GDX. Silver regained strength with PAAS up 6%.
FCX a copper and gold play was up 9% today! Corporate bonds and REITS are way off their bottoms as many REITS are getting refunded and investors are looking for yield. Brazil EWZ was up 6%.
Nat gas found a bottom last week and all sectors within energy have been strong:
COP up 3.2%,EWZ up 6%, SLB up 6.7%, SWN up 7% and VLO up 5.8%.
Clearly natural resources are the play for a weaker dollar, an economic recovery, infrastructure investments
and diversification outside the U.S. Agriculture could be next.

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