STLD - Run From Stocks Hide From Bonds And Embrace Commodities

• The broader U.S. stock market is historically overvalued, and most equities, including a majority of the popular favorites, offer very poor starting valuations.
• Bonds are not much better, as very low nominal yields offer minimal total return prospects, and the potential loss in real terms makes bonds a suboptimal choice.
• Cash is less risky than stocks and bonds right now; in my opinion, however, inflation is a threat to the real return of cash.
• The only major asset class that is historically undervalued is commodities.
• Commodity equities, which are even more loathed than commodities themselves, offer outstanding starting valuations, relative valuations, and absolute free cash flow yields.

For further details see: