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Some amazing data came out yesterday, as the Treasury sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time. (more…) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The iShares Barclays 20+ Year Treasury Bond ETF (NYSEArca:TLT) rounded out the top three funds on the inflows list, with creations of $152.6 million. The Dow Jones industrial average dropped 165.07 points, or 1.5 percent, to 10,978.62 on China's surprise move to lower its official interest rates by a quarter percentage to keep inflationary pressures in check for its fast-growing economy. Second on the list was the SPDR S&P Retail ETF (NYSEArca:XRT), which suffered $156.5 million in redemptions, or about a quarter of its assets.

American International Group Inc ( AIG ) is rising after the IPO of its Asian unit, AIA Group Ltd, raised a record $17.8 billion on the Hong Kong Stock Exchange. AIG sold 7.03 billion shares in AIA, which marks a 58% stake in the company. "The banking sector, mortgages, inflation in emerging markets, deflation here, a mini-currency crisis -- those issues are weighing on everybody's minds."

--Schlumberger ( SLB ) is up after it says Q3 sales were $6.85 billion and adjusted EPS were $0.71. "The banking sector, mortgages, inflation in emerging markets, deflation here, a mini-currency crisis -- those issues are weighing on everybody's minds." Hewlett-Packard Co. ( HPQ ) launched a tablet computer that runs Microsoft Windows and is targeted at business customers, Reuters reports.

Monthly retail sales were out today, with Abercrombie & Fitch( ANF ) seeing the biggest pop out of all the reports. There was an interesting read in the Wall Street Journal this morning, talking about some Federal Reserve officials considering pushing the inflation button to try and fix what is ailing the economy right now. Meanwhile, Wall Street is celebrating market gains, but when I see commodity prices screaming higher, I know this will eventually hit the consumer in many ways that will not benefit those who are not invested in the high-beta momentum stocks of the day.

The U.S. Justice Department dismissed a criminal case against UBS ( UBS ), which required the bank to admit that it helped American citizens evade taxes, Bloomberg reported. Prosecutors said that UBS--Switzerland's larges bank--had complied with an 18-month agreement it had signed in February of last yea, which dictated that UBS pay $780 million and admitted to assisting in tax evasion from 2000 to 2007, Bloomberg reported. "The banking sector, mortgages, inflation in emerging markets, deflation here, a mini-currency crisis -- those issues are weighing on everybody's minds."

One of the Federal Reserve's main tools is setting target interest rates, and profits can be made or lost based on what the Fed says at its meetings. This causes the price to drop -- and the yields to rise -- ultimately making riskier fixed-income securities more competitive when compared with safer investments. The two primary reasons the Federal Reserve raises target rates is to slow the economy and/or to prevent out-of-control inflation .

A few of the ways to get exposure to this rally include: PowerShares DB Agriculture (NYSEArca: DBA): 11.4% of DBA is corn futures Teucrium Corn (NYSEArca: CORN): Holds corn futures contracts Market Vectors Agribusiness ( MOO ): Monsanto is 8.4% Tisha Guerrero contributed to this article. Food prices and agriculture exchange traded funds (ETFs) both may reflect the news contained in the USDA's harvest projections. The U.S. Department of Agriculture cut its harvest projections for corn, soybeans and wheat, adding fuel to the commodity-rally fire .

Robert Shiller's cyclically adjusted price earnings ratio (( CAPE )) The CAPE ratio, defined as the ratio of the inflation-adjusted S&P 500 Index to the average of the past ten-year inflation-adjusted trailing S&P 500 annual earnings, is currently at 21.39. CAPE ratio and future growth combined In the graphs below I have combined the CAPE ratio with the future returns based on average dividend yields over ten and 70 years respectively. Prieur du Plessis submits: The surge in global stock markets led me to have a look at the valuation of the equities and especially the S&P 500 Index.

Big money has been flowing into Treasury inflation-protected securities (TIPs) as investors anticipate the next round of so-called QE will lead to higher inflation in the years ahead. To prove my point about inflation expectations you can turn to the breakeven rates, which measure the spread between conventional bond yields and the yields on the TIPs. If you still need more evidence that inflation is a concern in the future, I present you with the iShares Barclays TIPS Bond ETF (NYSEArca:TIP).

Today's move should keep the real and real-based funds like EWZ restrained tomorrow: And watch Brazil ahead of the weekend's G20 summit. Given Brazil's history of hyperinflation, monetary policy makers have an unusually loose target for inflation and are content to see prices climb at an annualized rate of 2.5% to 6.5%. While Brazilian officials will not attend, they may announce new measures designed to weaken the real as the currency wars enter a new phase with China'srate hike.

Some amazing data came out yesterday, as the Treasury sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time. (more…) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Hewlett-Packard Co. ( HPQ ) launched a tablet computer that runs Microsoft Windows and is targeted at business customers, Reuters reports. "The banking sector, mortgages, inflation in emerging markets, deflation here, a mini-currency crisis -- those issues are weighing on everybody's minds." In the latest earnings news: --Baidu.com Inc ( BIDU ) is rising on Nasdaq after the Chinese Internet group reported third quarter results that beat expectations and a number of brokerages raised their price targets for the company.

Second on the list was the SPDR S&P Retail ETF (NYSEArca:XRT), which suffered $156.5 million in redemptions, or about a quarter of its assets. The iShares Barclays 20+ Year Treasury Bond ETF (NYSEArca:TLT) rounded out the top three funds on the inflows list, with creations of $152.6 million. The Dow Jones industrial average dropped 165.07 points, or 1.5 percent, to 10,978.62 on China's surprise move to lower its official interest rates by a quarter percentage to keep inflationary pressures in check for its fast-growing economy.

Getting back to the market today, Pepsico( PEP ) and Marriott International( MAR ) both fell following their 3rd quarter results. There was an interesting read in the Wall Street Journal this morning, talking about some Federal Reserve officials considering pushing the inflation button to try and fix what is ailing the economy right now. Meanwhile, Wall Street is celebrating market gains, but when I see commodity prices screaming higher, I know this will eventually hit the consumer in many ways that will not benefit those who are not invested in the high-beta momentum stocks of the day.

By Dian L. Chu, Economic Forecasts & Opinions In an exclusive interview with CNBC on Monday, Oct. 4, Jim Rogers talks about commodities, bond and the currency market. I generally tend to agree that gold and commodities could head higher driven by the fear factors like currency debase and inflation arising out of the global monetary QE1 and incoming QE 2. And as the current price level seems to suggest quite a bit of "faux" fear premium has built in, the white metal appears overbought and could be heading towards a bubble stage.

But despite the rising inflation numbers, new discussions are appearing in the British media of another round of quantitative easing by the BOE to stimulate the UK economy, similar to their US counterparts at the Fed. This bout of inflation may have been caused by loose monetary policy by the Bank of England ( BOE ) in their fight against the economic downturn. Given that an increase in interest rates could stymie the tepid 1.2% growth in the UK economy, the BOE will most likely not raise interest rates anytime soon.

As I have discussed previously, there is no good alternative to TIPS if you want a low-volatility investment in real space. Since TIPS are explicitly indexed, buying a TIPS bond with a duration equal to your decision horizon is a zero-volatility investment (or essentially zero volatility) in inflation-adjusted terms. Notice the position of TIPS.

In energy ETFs, the United States Oil Fund ( USO ) is up 0.23% to $34.91 and the United States Natural Gas fund ( UNG ) is down 2.4% to $5.29. "The banking sector, mortgages, inflation in emerging markets, deflation here, a mini-currency crisis -- those issues are weighing on everybody's minds." Hewlett-Packard Co. ( HPQ ) launched a tablet computer that runs Microsoft Windows and is targeted at business customers, Reuters reports.

David White submits: The latest ramp up in US equities has been generated by speculation about positive Fed action (QE2). They may continue to go up in an inflation speculation driven rally, but a significant rise from current levels would likely preclude Fed QE2 action. Even an improvement in employment data (if not too great) could cause a down turn, as it might mean lowered expectations of or no QE2 action from the Fed.

David White submits: The latest ramp up in US equities has been generated by speculation about positive Fed action (QE2). They may continue to go up in an inflation speculation driven rally, but a significant rise from current levels would likely preclude Fed QE2 action. Even an improvement in employment data (if not too great) could cause a down turn, as it might mean lowered expectations of or no QE2 action from the Fed.

(more…) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Some amazing data came out yesterday, as the Treasury sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time.

David White submits: The latest ramp up in US equities has been generated by speculation about positive Fed action (QE2). They may continue to go up in an inflation speculation driven rally, but a significant rise from current levels would likely preclude Fed QE2 action. Even an improvement in employment data (if not too great) could cause a down turn, as it might mean lowered expectations of or no QE2 action from the Fed.

Commodity ETFs to consider include the SPDR Gold Trust (NYSEArca:GLD), which tracks the price of gold bullion. Speculation that the Federal Reserve will announce a new round of quantitative easing has increased over the last two weeks and investors are convinced enough that it will happen to put their money on the line. Big money has been flowing into Treasury inflation-protected securities (TIPs) as investors anticipate the next round of so-called QE will lead to higher inflation in the years ahead.

Some amazing data came out yesterday, as the Treasury sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time. (more…) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Aflac ( AFL ) is the world's largest supplemental insurance provider. AFL shares are undervalued at 9.6 times forward 12-month EPS. Increasing stock prices help to build your wealth and beat inflation, but dividends provide a steady return on your investment through thick and thin.

Crude Oil ( WTI ) - $82.00 // $0.23 // 0.28% Commentary: A stunning reversal had crude oil and equity markets recouping a significant portion of Wednesday's losses. Such an enormous level of quantitative easing would be seen as bullish for risk assets as it would create a much more stimulative economic environment, in addition to fanning fears of future inflation down the line. The report was fairly neutral, but the bullish trend of a declining surplus was arrested largely due to an uptick in imports and depressed levels of U.S. demand.

David White submits: The latest ramp up in US equities has been generated by speculation about positive Fed action (QE2). They may continue to go up in an inflation speculation driven rally, but a significant rise from current levels would likely preclude Fed QE2 action. Even an improvement in employment data (if not too great) could cause a down turn, as it might mean lowered expectations of or no QE2 action from the Fed.

Some amazing data came out yesterday, as the Treasury sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time. (more…) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Created by Dividend.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In the latest earnings news: --Baidu.com Inc ( BIDU ) is rising on Nasdaq after the Chinese Internet group reported third quarter results that beat expectations and a number of brokerages raised their price targets for the company. (+) BIDU (+4.5%) bounces from evening declines; beats with Q3 results, guides for revenue beat. "The banking sector, mortgages, inflation in emerging markets, deflation here, a mini-currency crisis -- those issues are weighing on everybody's minds."

Market Vectors Gold Miners ( GDX ) is up 0.52% to $54.55. "The banking sector, mortgages, inflation in emerging markets, deflation here, a mini-currency crisis -- those issues are weighing on everybody's minds." Hewlett-Packard Co. ( HPQ ) launched a tablet computer that runs Microsoft Windows and is targeted at business customers, Reuters reports.

In metal ETFs, SPDR Gold Trust ( GLD ) is down 1.3% to $130.63. Commodities finished trading broadly lower as concern grew over demand for basic materials following China's effort to slow economic activity to keep inflation in check. Commodities to watch: --Copper futures have fallen to the lowest level in nearly two weeks, Bloomberg notes, as concern about China's economy grows.

The United States Natural Gas ETF ( UNG ) is down 1.17% to $5.49. Commodities finished trading broadly lower as concern grew over demand for basic materials following China's effort to slow economic activity to keep inflation in check. Commodities to watch: --Copper futures have fallen to the lowest level in nearly two weeks, Bloomberg notes, as concern about China's economy grows.

--Shiner International ( BEST ) is higher after reporting that Q3 sales rose 79.2% year-over-year to $15.5 million. Stocks are solidly lower at mid-day as investors react to a disappointing outlook from Cisco Systems ( CSCO ), renewed concerns over sovereign debt in Europe, which is pushing the dollar higher, and warning signs out of China about inflation. Investors are also eying the Group of 20 Summit in South Korea where world leaders are trying to develop plans to bolster a generally weaker global economy amid allegations of currency manipulation and widening trade gaps.

(aka sovereign debt crisis) Quantitative Easing Part 2 (QE2) policies that have many critics and many potentially harmful unintended consequences like dollar devaluation, currency war, rampant inflation etc. Just make sure the holdings of the fund focuses more on the big money center banks and doesn't really include much in the way of insurance companies or credit card firms. Putting Everything in Focus I know that discussing a potential banking or sovereign debt crisis makes it sound like it's "game over" for the stock market.

In precious metal ETFs, the SPDR Gold Trust ( GLD ) is down 1.63% to $130.26. Stocks are sharply lower at mid-day as worries about higher interest rates in China and the prospect of a new round of bailouts for European Union nations heightens concerns among investors. In China, new limits were announced on the ability of foreigners to buy residential or commercial property on the Chinese mainland--signaling the latest effort in that country to contain inflation, MarketWatch report.

Eight years ago, Dilma Rousseff appeared for only four seconds in then-president-elect Lula's electoral propaganda. She won without having to write an open letter to the population of Brazil, like Lula had to do back in 2002. The climate is vastly different now, with Brazil apparently having beaten its hyperinflationary problems and standing at the pinnacle of the world's emerging economies.

Hartford Financial ( HIG ) did its part to help the averages after reporting earnings results Wall Street liked. In the past couple of days and with a rising stock market, the accolades are numerous for Federal Reserve Chairman Ben Bernanke. The idea that he has studied what happened in Japan and will do everything in his power to prevent deflation by continuing the printing press of U.S. dollars could become quite dangerous in a "be careful what you wish for" scenario.

The Dollar Proof Portfolio also has large weightings in Vanguard FTSE All World ex-US VEU, Vanguard FTSE All World ex-US Small Cap (VSS), SPDR Barclays Intl Inflation Protected (WIP), SPDR Barclays Intl Treasury Bond (BWX) and PowerShares Dollar Down ETF (UDN) totaling 59% of the portfolio. Some clients own BWX and WIP. The Dollar Proof Portfolio gets off to a peculiar start with a 20% weighting to the Vanguard Total Stock Market (VTI) which is a domestic large cap fund.

On the other hand, if you don't care for all that leverage then just go with [[TBF]] which is the 1X version of what [[TBT]] is doing. (aka sovereign debt crisis) Quantitative Easing Part 2 (QE2) policies that have many critics and many potentially harmful unintended consequences like dollar devaluation, currency war, rampant inflation etc. Just make sure the holdings of the fund focuses more on the big money center banks and doesn't really include much in the way of insurance companies or credit card firms.

And then, in just two days last week, the exchange traded note ( ETN ) that tracks it sank more than 20%. Speculation that China would increase interest rates to cool inflation in its economy sent fear through the market that the world's largest commodity consumer would be stepping back, says Debarati Roy for Bloomberg . Both international and domestic sugar prices have hit 30-year highs in 2010 and pushed iPath Dow Jones UBSSugar TR sub-Index (NYSEArca: SGG) up more than 92% in the last six months.

The coveted metal hit $1,350 an ounce in October in the futures market- that’s a record high, although adjusted for inflation it is still about 50% below the early 1980s peak. Often times, the funds offer a more easily tradable instrument that mirrors the price commodities fetch in the futures pits or in the physical markets. Even though commodity ETFs do shield you from some of the volatility of futures (primarily that margin call potentiality) they will still fluctuate with their underlying index or asset.

Finally, Kohl's Corp. ( KSS ) reported that its third-quarter profit rose to $194 million, or 63 cents per share, from $193 million, or 63 cents per share, in the year-ago period. The Dow Jones Industrial Average (DJIA) may have been saved by a late-session buying spree on Wednesday, but market bears are poised to take the reins once again this morning. In Asia, Chinese economic data revealed that consumer price inflation rose at its fastest clip in two years, while industrial output growth came in weaker than expected.

On the flip side, EOG Resources ( EOG ), Agrium ( AGU ) and Garmin ( GRMN ) all saw selling on their earnings news. In the past couple of days and with a rising stock market, the accolades are numerous for Federal Reserve Chairman Ben Bernanke. The idea that he has studied what happened in Japan and will do everything in his power to prevent deflation by continuing the printing press of U.S. dollars could become quite dangerous in a "be careful what you wish for" scenario.

Market Vectors Gold Miners ( GDX ) is down 3.11% to $59.86. Fears that the Chinese government will raise interest rates to rein in inflation pushed crude-oil futures sharply into the red to finish the week. In other energy futures, heating oil was down 2.46% to $2.36 a gallon while natural gas fell 3.08%, to $3.80 per million British thermal units.

The coveted metal hit $1,350 an ounce in October in the futures market- that’s a record high, although adjusted for inflation it is still about 50% below the early 1980s peak. Often times, the funds offer a more easily tradable instrument that mirrors the price commodities fetch in the futures pits or in the physical markets. Even though commodity ETFs do shield you from some of the volatility of futures (primarily that margin call potentiality) they will still fluctuate with their underlying index or asset.

In energy ETFs, the United States Oil Fund ( USO ) is down 3.22% to $36.62. Fears that the Chinese government will raise interest rates to rein in inflation pushed crude-oil futures sharply into the red to finish the week. In other energy futures, heating oil was down 2.46% to $2.36 a gallon while natural gas fell 3.08%, to $3.80 per million British thermal units.

Market Vectors Gold Miners ( GDX ) is down 0.16% to $61.21. Stocks are solidly lower at mid-day as investors react to a disappointing outlook from Cisco Systems ( CSCO ), renewed concerns over sovereign debt in Europe, which is pushing the dollar higher, and warning signs out of China about inflation. Investors are also eying the Group of 20 Summit in South Korea where world leaders are trying to develop plans to bolster a generally weaker global economy amid allegations of currency manipulation and widening trade gaps.

--Shiner International ( BEST ) is higher after reporting that Q3 sales rose 79.2% year-over-year to $15.5 million. Stocks are solidly lower at mid-day as investors react to a disappointing outlook from Cisco Systems ( CSCO ), renewed concerns over sovereign debt in Europe, which is pushing the dollar higher, and warning signs out of China about inflation. Investors are also eying the Group of 20 Summit in South Korea where world leaders are trying to develop plans to bolster a generally weaker global economy amid allegations of currency manipulation and widening trade gaps.

In metal ETFs, SPDR Gold Trust ( GLD ) is down 3.2% to $133.27. Fears that the Chinese government will raise interest rates to rein in inflation pushed crude-oil futures sharply into the red to finish the week. In other energy futures, heating oil was down 2.46% to $2.36 a gallon while natural gas fell 3.08%, to $3.80 per million British thermal units.

Commodities to watch: --Sugar futures plunged 12%--a record, Bloomberg notes--amid China-stoked fears that interest rates in that country will increase. The United States Natural Gas ETF ( UNG ) is down 2.96% to $5.50. Fears that the Chinese government will raise interest rates to rein in inflation pushed crude-oil futures sharply into the red to finish the week.

In energy ETFs, the United States Oil Fund ( USO ) is down 2.49% to $35.60 and the United States Natural Gas fund ( UNG ) is down 1.71% to $5.45. Stocks are sharply lower at mid-day as worries about higher interest rates in China and the prospect of a new round of bailouts for European Union nations heightens concerns among investors. In China, new limits were announced on the ability of foreigners to buy residential or commercial property on the Chinese mainland--signaling the latest effort in that country to contain inflation, MarketWatch report.

In energy ETFs, the United States Oil Fund ( USO ) is down 3.46% to $36.53. Energy shares have remained sacked for almost the entire day as crude oil futures plunged over concerns about China's monetary policy strategy going forward. Earlier, the Chinese government indicated it would continue to restrict monetary policy even with a host of recent measures to contain inflationary forces there.

On the flip side, EOG Resources ( EOG ), Agrium ( AGU ) and Garmin ( GRMN ) all saw selling on their earnings news. In the past couple of days and with a rising stock market, the accolades are numerous for Federal Reserve Chairman Ben Bernanke. The idea that he has studied what happened in Japan and will do everything in his power to prevent deflation by continuing the printing press of U.S. dollars could become quite dangerous in a "be careful what you wish for" scenario.

The coveted metal hit $1,350 an ounce in October in the futures market- that’s a record high, although adjusted for inflation it is still about 50% below the early 1980s peak. Only the Duke brothers of Trading Places fame could handle the kind of margin calls and outright stress such moves bring. Often times, the funds offer a more easily tradable instrument that mirrors the price commodities fetch in the futures pits or in the physical markets.

Market Vectors Gold Miners ( GDX ) is down 3.53% to $57.37. Stocks are sharply lower at mid-day as worries about higher interest rates in China and the prospect of a new round of bailouts for European Union nations heightens concerns among investors. In China, new limits were announced on the ability of foreigners to buy residential or commercial property on the Chinese mainland--signaling the latest effort in that country to contain inflation, MarketWatch report.

In precious metal ETFs, the SPDR Gold Trust ( GLD ) is down 1.63% to $130.26. Stocks are sharply lower at mid-day as worries about higher interest rates in China and the prospect of a new round of bailouts for European Union nations heightens concerns among investors. In China, new limits were announced on the ability of foreigners to buy residential or commercial property on the Chinese mainland--signaling the latest effort in that country to contain inflation, MarketWatch report.

In precious metal ETFs, the SPDR Gold Trust ( GLD ) is up 0.15% to $137.45. Stocks are solidly lower at mid-day as investors react to a disappointing outlook from Cisco Systems ( CSCO ), renewed concerns over sovereign debt in Europe, which is pushing the dollar higher, and warning signs out of China about inflation. Investors are also eying the Group of 20 Summit in South Korea where world leaders are trying to develop plans to bolster a generally weaker global economy amid allegations of currency manipulation and widening trade gaps.

Market Vectors Gold Miners ( GDX ) is down 0.16% to $61.21. Stocks are solidly lower at mid-day as investors react to a disappointing outlook from Cisco Systems ( CSCO ), renewed concerns over sovereign debt in Europe, which is pushing the dollar higher, and warning signs out of China about inflation. Investors are also eying the Group of 20 Summit in South Korea where world leaders are trying to develop plans to bolster a generally weaker global economy amid allegations of currency manipulation and widening trade gaps.

The U.S. Dollar Index ( DX ) is up 0.28%, or $0.03, to $10.66. Market Vectors Gold Miners (GDX) is up 0.42% to $59.28. Stocks are trading in a narrow range around the even mark, as China moves to tighten its money supply to cool the economy and control inflation and new concerns surface over efforts to quell the Irish debt crisis, which are off-setting supportive earnings and M&A speculation.

The iShares Barclays TIPS Bond (NYSEArca:TIP) was the eighth-biggest U.S. ETF at the end of October, with $20.74 billion in assets, according to data compiled by IndexUniverse.com. The value of the bond's principal or the interest income paid is adjusted to track changes in an official inflation measure. Interest in inflation-protected bonds has been on the upswing amid growing concern among investors that all the monetary stimulus from central banks such as the Federal Reserve is creating inflationary pressure that will rear its head before long.

In energy ETFs, the United States Oil Fund ( USO ) is down 2.49% to $35.60 and the United States Natural Gas fund ( UNG ) is down 1.71% to $5.45. Stocks are sharply lower at mid-day as worries about higher interest rates in China and the prospect of a new round of bailouts for European Union nations heightens concerns among investors. In China, new limits were announced on the ability of foreigners to buy residential or commercial property on the Chinese mainland--signaling the latest effort in that country to contain inflation, MarketWatch report.

U.S. refineries cut utilization rates to 81.8 percent, the lowest since March, as refiners try lower swollen inventory levels in the products market. As China, India and other emerging countries are implementing fresh “quantitative tightening”, including raising interests rates, among other measures to rein in inflation, "hot money", and partly to combat Fed's QE2, growth is expected to drop for the next couple of quarters, and longer. The bottom line is demand has to improve considerably just to keep current supply levels at equilibrium, and this is just not going to occur in this economy with higher prices.

Market Vectors Gold Miners ( GDX ) is down 3.53% to $57.37. Stocks are sharply lower at mid-day as worries about higher interest rates in China and the prospect of a new round of bailouts for European Union nations heightens concerns among investors. In China, new limits were announced on the ability of foreigners to buy residential or commercial property on the Chinese mainland--signaling the latest effort in that country to contain inflation, MarketWatch report.

Refined sugar futures fell $91.50, or 12%, to close at $677.10 a metric ton Commodity stocks to watch: --Aluminum producer Alcoa ( AA ) fell sharply over concern--like many other commodities stocks--that China would pull back spending on raw materials. Fears that the Chinese government will raise interest rates to rein in inflation pushed crude-oil futures sharply into the red to finish the week. In other energy futures, heating oil was down 2.46% to $2.36 a gallon while natural gas fell 3.08%, to $3.80 per million British thermal units.

Blackrock ( BLK ) shares fell on news Bank of America ( BAC ) and PNC Financial ( PNC ) are looking to trim their holdings in the money management firm. In the past couple of days and with a rising stock market, the accolades are numerous for Federal Reserve Chairman Ben Bernanke. The idea that he has studied what happened in Japan and will do everything in his power to prevent deflation by continuing the printing press of U.S. dollars could become quite dangerous in a "be careful what you wish for" scenario.

Good news for funds like TLT: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. However, factoring out the vehicle category, “core” inflation still edged up only 0.2%, reflecting an almost total lack of pricing pressure in the economy. In other words, commodityinflation was alive and well in the U.S. economy even before the Fed’s $600 billion quantitative easing program sent commodity prices into overdrive in an apparent attempt to boost inflation across the board.

If you have a good appetite for risk then you can ratchet up to 3X shorts like [[TMV]] and [[SBND]]. (aka sovereign debt crisis) Quantitative Easing Part 2 (QE2) policies that have many critics and many potentially harmful unintended consequences like dollar devaluation, currency war, rampant inflation etc. Just make sure the holdings of the fund focuses more on the big money center banks and doesn't really include much in the way of insurance companies or credit card firms.

After that, the next group is the large miners-the Barricks ( ABX ) and the Newmonts ( NEM ), et al. Hard Assets Investor submits: by Lara Crigger This interview previously appeared in the Exchange-Traded Funds Report . But if you look at the buyer of jewelry at a gold market in Chennai, India, they're not asking, "Well, wait a minute, what's the CPI estimate coming out of the U.S.

In energy ETFs, the United States Oil Fund ( USO ) is down 2.49% to $35.60 and the United States Natural Gas fund ( UNG ) is down 1.71% to $5.45. Stocks are sharply lower at mid-day as worries about higher interest rates in China and the prospect of a new round of bailouts for European Union nations heightens concerns among investors. In China, new limits were announced on the ability of foreigners to buy residential or commercial property on the Chinese mainland--signaling the latest effort in that country to contain inflation, MarketWatch report.

Energy shares have remained sacked for almost the entire day as crude oil futures plunged over concerns about China's monetary policy strategy going forward. The United States Natural Gas ETF ( UNG ) is down 3.04% to $5.49. Earlier, the Chinese government indicated it would continue to restrict monetary policy even with a host of recent measures to contain inflationary forces there.

In energy ETFs, the United States Oil Fund ( USO ) is down 3.46% to $36.53. Energy shares have remained sacked for almost the entire day as crude oil futures plunged over concerns about China's monetary policy strategy going forward. Earlier, the Chinese government indicated it would continue to restrict monetary policy even with a host of recent measures to contain inflationary forces there.

Market Vectors Gold Miners ( GDX ) is down 2.79% to $57.81. Commodities finished trading broadly lower as concern grew over demand for basic materials following China's effort to slow economic activity to keep inflation in check. Commodities to watch: --Copper futures have fallen to the lowest level in nearly two weeks, Bloomberg notes, as concern about China's economy grows.

The gold portfolio half of its assets invested in the SPDR Gold Trust ( GLD ), a gold exchange-traded fund, and the remainder invested in gold equities. McGuire, who manages a $330-million gold portfolio at the Teacher Retirement System of Texas, makes the outsize forecast in his newly-released book, \"Hard Money." "Pension funds have a number of investments that they have already decided are attractive in the event that inflation begins to return," McIntyre noted.

In precious metal ETFs, the SPDR Gold Trust ( GLD ) is up 0.15% to $137.45. Stocks are solidly lower at mid-day as investors react to a disappointing outlook from Cisco Systems ( CSCO ), renewed concerns over sovereign debt in Europe, which is pushing the dollar higher, and warning signs out of China about inflation. Investors are also eying the Group of 20 Summit in South Korea where world leaders are trying to develop plans to bolster a generally weaker global economy amid allegations of currency manipulation and widening trade gaps.

Kinross Gold ( KGC ) Headquartered in Toronto, Kinross Gold (NYSE: KGC ) is involved with the exploration and acquisition of gold-bearing properties, as well as a wide variety of other mining activities. 2010 has been an up-and-down year for KGC, and overall the stock is down 2.5% year-to-date. There's a lot of talk about inflation in the works after the latest round of "quantitative easing" by the Federal Reserve.

Similarly, their Japan Hedged Equity Fund ( DXJ ) trades at 6.5x cashflow today, while providing investors with an embedded currency hedge. A 20-year economic landscape branded by zombie banks, frightened management, bridges to nowhere, repeated bouts of deflation and broad-based despair has wreaked havoc on investor confidence. Experience has taught us that calling major secular turning points in any market is difficult at best, so we prefer to leg into investments over time as long as we have an appropriate margin of safety.

Other major ETFs in the area include Vanguard Dividend Appreciation ETF ( VIG ), Vanguard High Dividend Yield ETF ( VYM ) and WisdomTree Total Dividend ETF (NYSEArca:DTD). In 2010 they all rebounded nicely from a summer scare and did as good or better than large caps generally (SPY): More US companies cut their dividends in 2009 and fewer raised them than any other year on record, according to Standard & Poor's. Unlike fixed income where the only danger is inflation and rising interest rates, dividend stocks also have fundamental economic risk.

My recommendation is the SPDR Financial Select Sector ETF (NYSEArca:XLF), which invests in a basket of 83 U.S.-based financial firms. But now that the probability of a double-dip has subsided, I think there are good reasons to be in stocks, and I'll try to make the case for reluctant investors to move at least some of their money out of cash and into equities next year. Another theme worth exploring for investors is rising food prices, and the Market Vectors Agribusiness ETF (NYSEArca:MOO) is a good mousetrap for taking advantage of the trend.

In corporate news, Novartis AG (NYSE: NVS ) rose 5.7% after increasing its offer for eye-care specialist Alcon, Inc. (NYSE: ACL ). In economic news, the Consumer Price Index (CPI) for November rose 0.1% versus 1.1% a year ago, and confirmed the Fed's view that inflation is not currently a problem. The Dow started off higher yesterday and held its gains until lunchtime when the European markets closed lower with the euro taking a real beating and the dollar again soaring.

On the earnings front, Men's Wearhouse ( MW ) and H&R Block ( HRB ) saw selling following both companies' results. I was reading more anecdotes from Ben Bernanke's 60 Minutes appearance in which he discussed the Federal Reserve's ability to easily control inflation and change course quickly on its recent accommodative monetary policy. We have seen the Fed raise interest rates in the past to control the stock market's ramp, and when you turn back to the early 80′s we saw the process tame runaway commodity prices.

So far we’ve discussed biflationary effects and feedback loops. View the slideshow Symbols included in the slideshow: AVB, USO, OIL, ONO, IPE, GLD, KO, EEM, JNJ, DBA, MOO, MON The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Another way to say this is that inflation shows up where demand allows it--the proverbial path of least resistance—which is not luxury yachts and large houses but essential assets that are widely available and non-substitutable: energy and food come quickly to mind.

Chinese consumer price inflation surged to a 25-month high in October with a reading of 4.4 percent, well above the 3.6 percent increase a month earlier and the 3 percent target the government would like to achieve. The Global X China Materials ETF (NYSEArca:CHIM) and the Global X China Energy ETF (NYSEArca:CHIE) are ETFs to watch if this scenario plays out. For those interested in hedge-fund replication strategies, a number of ETFs are on the market to help calm investors’ nerves and lower daily price swings.

President Obama argued the country couldn't afford those for families in the highest tax brackets, but failed to apply such reasoning to temporary benefits bestowed on Democratic constituencies by his 2009 stimulus program. Just the fear of inflation causes investors to demand higher interest rates on virtually all dollar-denominated bonds issued by government agencies, banks and corporations. As Washington spends and borrows, the Treasury will have to offer higher rates on new 20 and 30 year bonds, making comparable securities issued in 2010 and earlier worth less in the resale market.

The Global X China Materials ETF (NYSEArca:CHIM) and the Global X China Energy ETF (NYSEArca:CHIE) are ETFs to watch if this scenario plays out. For those interested in hedge-fund replication strategies, a number of ETFs are on the market to help calm investors’ nerves and lower daily price swings. If inflation continues to increase in 2011 and the government intervenes as it has done in the past, the biggest losers will be Chinese consumers.

iShares, BlackRock's ETF arm and the world's largest ETF provider, rolled out a bond fund focused on short term Treasury inflation-protected securities, or TIPs, zooming in on a part of the yield curve that many see as the place to be if this year's bond rally unravels. TIPs ETFs are not new, but the iShares Barclays 0-5 Year TIPS Bond Fund (NYSEArca:STIP) is the San Francisco-based company's first targeting the shortest end of the curve. TIPS Index Fund (NYSEArca:STPZ), which has been on the market for a bit more than a year.

But with the market still down 2% this year in local currency terms compared to a 9% gain in the EEM and numbers like 26% and 38% from Turkey andChile, respectively there is a lot of catching up here to do. More trades to watch on the Bovespa next week In China, according to the Ministry of Agriculture, food inflation seems to be coming down. On Friday, Brazilraised its reserve requirements for banks — a move that has been interpreted as a sign that Copom may not raise rates as aggressively if they can control inflation this way.

Could This CAT Bounce? Caterpillar (CAT) stock has had an enormous run and has finished the year right at its 52 week high mainly on the emerging markets and global resources/commodities trade. Third, China, a major market for CAT, is battling an escalating inflation problem, and I expect Beijing to undergo a severe tightening during the first half of 2011, with at least three interest rate raises during 2011.

In corporate news, the surge of bank stocks came following the purchase of Chrysler Financial by Toronto-Dominion Bank (NYSE: TD ). And even though the sector had some of its gains shaved late in the day, its influence led the S&P 500 higher for the 13th time in 15 sessions, making this December "Santa Claus rally" one of the most impressive in recent memory. In economic news, Gross Domestic Product (GDP), the value of all goods and services produced in the United States, rose at a seasonally and inflation-adjusted annual rate of 2.6% in July through September.

Shares of Nokia ( NOK ) are down after the company said it planned to cut about 800 jobs in its home market in Finland. Also this morning, Nokia has delayed the rollout of its next flagship model, the E7, into early next year, missing the key holiday sales season on developed markets, Reuters reports. Stocks are moderately higher at mid-session as investors focus on retail sales figures that have risen for nearly two quarters while prices paid at the wholesale level showed inflation remains in check.

Tenet Healthcare Corp. ( THC ) will also be in focus, after the company rejected a takeover offer from Community Health Systems ( CYH ). Finally, Green Mountain Coffee Roasters ( GMCR ) reported its fiscal fourth-quarter profit nearly doubled to $27 million, or 20 cents per share, from a year ago. Currencies and Commodities The U.S. dollar is pulling aback this morning, as Asian inflation concerns and strong demand for yesterday's U.S. Treasury's 30-year bond auction sapped the greenback's strength.

In company news, Agnico-Eagle ( AEM ) last night forecast an 18% increase in gold production next year, rising to between 1.13 million ounces and 1.23 million ounces. Copper continues to back away from record highs, with the most heavily traded March contract down about $0.02 this morning to $4.11 as stockpiles grew and speculation returned that China will raise interest rates to help control inflation and keeping a lid on future demand. Gold likewise is down slightly today, falling $1.70 from yesterday's settlement at $1,386.20 an ounce.

Investors get exposure to the large-cap software names such as Oracle ( ORCL ) and Microsoft ( MSFT ) as well as lesser-known companies that specialize in cloud computing. A weak dollar, inflation, and the fact that precious metals are becoming a permanent asset class are three major reasons I think both gold and silver can continue to hit new highs in the New Year. As countries such as China, Brazil, and India continue to accumulate wealth, it will be passed along to growing middle classes that will have significant disposable income for the first time.

Other major ETFs in the area include Vanguard Dividend Appreciation ETF ( VIG ), Vanguard High Dividend Yield ETF ( VYM ) and WisdomTree Total Dividend ETF (NYSEArca:DTD). In 2010 they all rebounded nicely from a summer scare and did as good or better than large caps generally (SPY): More US companies cut their dividends in 2009 and fewer raised them than any other year on record, according to Standard & Poor's. Unlike fixed income where the only danger is inflation and rising interest rates, dividend stocks also have fundamental economic risk.

Wisdom Tree's Japan Small Cap Dividend Fund ( DFJ ) yields nearly 3% and trades at roughly 80% of book value. A 20-year economic landscape branded by zombie banks, frightened management, bridges to nowhere, repeated bouts of deflation and broad-based despair has wreaked havoc on investor confidence. Experience has taught us that calling major secular turning points in any market is difficult at best, so we prefer to leg into investments over time as long as we have an appropriate margin of safety.

Another theme worth exploring for investors is rising food prices, and the Market Vectors Agribusiness ETF (NYSEArca:MOO) is a good mousetrap for taking advantage of the trend. Many companies MOO invests in are part of the solution, as they focus on ways of increasing food supplies with genetically altered seeds and pesticides. But now that the probability of a double-dip has subsided, I think there are good reasons to be in stocks, and I'll try to make the case for reluctant investors to move at least some of their money out of cash and into equities next year.

If so, broad funds like FXI may hold up well. Beijing’s gauge of Chinese manufacturing activity slipped in line with the private survey in December, revealing that the country’s crucial industrial boom is decelerating. For another, while the Shanghai market is celebrating news that the input costs component of the official PMI moderated slightly, this wholesale inflation gauge remains significantly elevated at 66.7 — better than the 73.5 posted in November, but still an ominous reminder that Beijing’s best efforts have yet to translate into real improvement on the inflationary front.

EDU – indicated up 4% pre-market. Contrary to 2010, this year might feature a slowing Chinese economy and re-rating stock markets, thanks to improved policy visibility, peaking out inflation and still relatively strong earnings growth . Anything the Chinese government does to fight local inflation will have the side effect of boosting the global buying power of the yuan.

And for a while I was doing really well with the Australian one [iShares MSCI Australia Index Fund (NYSEArca:EWA)]. Ludwig: That flies in the face of brokerage industry orthodoxy that equities are better than cash or bonds to achieve returns over the long term that beat inflation. Had Bank of America not stepped in and rescued Merrill Lynch, or had Mr. Paulson suddenly not come to his senses and instituted TARP, the disaster could have been on an unprecedented scale.

HNNMY, JNY and PVH are probably the first places to keep an eye on. Swedish boutique retailer H&M is getting pounded this morning in Europe after confessing that the cost of cotton is digging into its business. H&M, which trades fairly thinly in ADR form as HNNMY has investors worried that the rising cotton prices that depressed its fourth-quarter profit by 11% is only the first taste of inflation working its way into the apparel sector.