Greetings,
United States: Market-based inflation expectations are climbing. The 10yr breakeven rate reached 2.7% for the first time since 2006.
![The Daily Shot Brief – October 27th, 2021](https://thedailyshot.com/wp-content/uploads/US-BE-10y2110270435.png)
The stock market is also betting on higher inflation. The Horizon Kinetics Inflation Beneficiaries ETF has been outperforming.
![The Daily Shot Brief – October 27th, 2021](https://thedailyshot.com/wp-content/uploads/US-INFL2110270435.png)
Europe: EU gas demand depends mainly on the weather. The current supply situation, according to Barclays, suggests that even a mild winter will lead to continued high gas prices.
![The Daily Shot Brief – October 27th, 2021](https://thedailyshot.com/wp-content/uploads/EU-Gas-demand2110270435.png)
China: Thermal coal prices are down 40% from the highs.
![The Daily Shot Brief – October 27th, 2021](https://thedailyshot.com/wp-content/uploads/CH-Coal2110270435.png)
Equity: Many analysts continue to warn that equity valuations are nearing bubble territory.
![The Daily Shot Brief – October 27th, 2021](https://thedailyshot.com/wp-content/uploads/EQ-Valuations-bubble2110270435.png)
Stocks also appear stretched relative to commodities, which typically favors value over growth sectors.
![The Daily Shot Brief – October 27th, 2021](https://thedailyshot.com/wp-content/uploads/EQ-Strethced-relative-to-commod2110270435.png)
Rates: The nominal yield curve has been flattening. That hasn’t been the case with the real curve.
![The Daily Shot Brief – October 27th, 2021](https://thedailyshot.com/wp-content/uploads/RA-The-nominal-yield-curve-has-been-flattening-real-not-so-much2110270435.png)
Food for Thought: Market capitalization of global automakers:
![The Daily Shot Brief – October 27th, 2021](https://thedailyshot.com/wp-content/uploads/VTB-Market-capitalization-of-global-autmakers-AAAA2110270435.png)
Edited by Daniel Moskovits
Contact the Daily Shot Editor: Editor@DailyShotLetter.com