Good Thursday morning. This morning we learned that the Fed’s preferred inflation gauge, known as the PCE Price Index, came in showing core inflation hit an annual rate of 3.3% in April, slightly better than expected. Following a strong rally on Monday/Tuesday, gold/silver/miner prices gave up 70% of their gains yesterday, pressured by mainstream economist fears of rising inflation and that the war with Iran will continue to drag on. Gold fell as much as $95/oz overnight, however following the Core PCE release have clawed back more than half of those losses with GDX (Gold Miner ETF) now down just 1%. 

VRA Bottom Line: our view remains that while 90% of economists believe inflation will prove to be a drag on the economy, we believe those fears will prove to be illusory. The war is over/ending, oil prices and interest rates have already begun to fall markedly, and clearly, the equity markets have shown little to no concerns about inflation over this remarkably strong rally over the la...