The Biggest Story Of 2014 - The Return Of The Inflation Trade | Seeking Alpha
Chris Puplava has written an excellent article about how the stock market trend is up currently, and the bullish trend should continue. The energy sector should continue to go up as inflation goes up. Oil always rises when the market perceives that people may have more money to pay for oil or if the dollar is weak. If it takes more dollars to buy oil due to inflation or something else, then the price of oil goes up.
Chris also presented a table of leading indicators based on how the economy is doing. If most of those conditions are positive, then the stock market will probably go up. For example, one indicator the author uses is the Philly Fed Business Outlook. Another leading indicator is Initial Jobless Claims. I totally agree with Chris on these economic signposts. So, we should be mostly allocated to stocks currently. I am also long on energy through oil stocks like Continental Resources (CLR) and ERX, the triple energy bull ETF.
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