D. McHattie

The Reflation Trade Portfolio

"It seems like the "thread-the-needle" or "goldilocks" scenario is the least likely outcome."

No kidding. Especially given the outsize proportion of owner's equivalent rent in the calculation of our inflation indices. Rents, home prices and owner's equivalent rents are falling and will skew our inflation measurements, making us think that inflation is moderate when, really, in everything but housing inflation is totally out of control.

Bernanke is definitely going to err on the side of inflation.

My reflation etfs would be GDX, PBW (or GEX) and NLR (do you realize how many nuclear reactors are in production?).