Chart of the Day: Producer Price Inflation deserves attention...

Not to beat a dead horse, but, to add to our Monday message on input costs, here's the latest look at the Producer Price Index:



We're thinking that the bond and gold bulls are dangerously sanguine in this environment. In any event, let's just say that in our view the risk/reward tradeoff doesn't support their optimism. We suspect that the North Korean conflict -- not to mention a dovish-sounding Fed -- at least partly justifies their view...