Rising interest rates are a nightmare scenario for Washington... They raise the cost of getting and paying a mortgage, which is already a problem for millions right now. And they also make it harder on businesses that need to borrow money. More burdens on a struggling economy would be disastrous.

Most smart people expect the government's enormous "funny money" program to eventually produce inflation and higher interest rates. An easy way to track this potential problem is with shares of TBT.

TBT is an investment fund that rises when interest rates rise. In early May, TBT broke out to a fresh six-month high around $50 per share. It went on to $58 as the market priced in higher interest rates. But as you can see from today's chart, TBT has eased back to $47 per share.

We won't claim we know for certain which way the "inflation/no inflation" argument will go. Nobody does. But we can look to things like gold stocks and TBT for signals. Right now, TBT is signaling "inflation is off the table for a while."

By Brian Hunt

Good investing,

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

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