From a portfolio construction standpoint, the deflation/falling-price theme continues to suggest that protection of capital is a key strategy for a variety of asset classes.Read it at Advisor Perspectives
The Deflation Trend
By Chris Kimble
Yesterday on Twitter I asked, ‘How soon until talk of deflation begins again?” Well, I didn’t have to wait very long. The above post showed up in my Google Reader list later in the afternoon. As the charts depict, Treasury yields are approaching new lows while commodities continue to slump (e.g. copper, gold, oil). While I don’t believe we will see outright deflation anytime soon, the disinflation trend may be with us for some time.