RE:Time To Give In@ 13X2413 - I've been adding as the pull back is market related and the Fed has to be close to the end of its tighening cycle. The Fed has raised rates so quickly that the Silicon Valley Bank has failed.
The low yieding long term bonds SFV held became increasing less valuable as the Fed raised rates and it was unable to service cash withdrawals without selling its bond holdings at a loss. So unless the Fed is going to be in the business of putting banks out of business, it has little choice but to ease off on rate hikes. The Silicon Valley Bank is definately not the only bank holding government bonds on reserve.
So under that backdrop, commodities in the longer run are a hedge against inflation. Inflation and hard assets are inversely correlated and it's not going to be different this time.
The incredibile irony of it all is the statement made by Biden today. ""If a bank is taken over by FDIC, the people running the bank should not work there anymore."
Fired for buying government treasuries!!