If inflation is predicted to go much higher due to all this government spending, wouldn't it invrease the price of basic materials? And wouldn't demand for basic materials needed for infrastructure programs pushed by the government also increase the price of basic materials?
Just compare UYM to other inflation sensitive holdings and you will not see a correlation. However, we are till in a deflationary environment and the firms that use basic materials will not buy more until those inventories are worked off. However, when they are UYM should do well as there will be to many dollars facing chasing to few goods as buisness work off inventory. The hyper inflation question has not been answered but I think it will as the dollar is a fiat currency. True the dollar is trading up but compared to what other worthless fiat currency. I think the mere fear of future inflation will set a floor for UYM and when you ee treasurey yields trade past historical averages you will see the inflation.