Jun. 7 at 2:53 AM
$SPY $XOP $XME $B $TLT
Oil loves high yields.
The 30 year could make its way to 5.5+%?
Bond market isn’t happy, but I just don’t see The FED raising rates anytime soon.
I personally don’t believe they have to.
Higher oil prices alone will handle inflation via demand destruction over time.
Let oil run to
$200-300
The FED won’t have to do anything.
Oil wil do it for them.
Then everything collapses.
Then what will the FED do?
Take rates down to 1% of course and continue printing money as fast as the machines will print.
Let inflation fight inflation.
My call for a mid 2027 recession is still in effect.
Markets typically rollover 6-8 months in advance.
Long term, I will remain a commodities Bull.
Look at that M-2 supply chart.
Hyper-Growth: If M2 skyrockets too fast (like during the 2020-2021 pandemic response), it leads to severe, long-term inflation that erodes household wealth.
https://wolfstreet.com/2026/06/06/theres-trouble-brewing-in-the-treasury-market/
