"Inflation Expectations Percolating Higher …"

A subject near and dear. The sweet spot for P/E ratios is 1.00- 2.00% annual CPI inflation. As you move away from that in either direction multiples drop off pretty fast, to the point that equities are not an optimal investment. You won't believe what the best investments for inflation in the 8-12% and greater than 100% ranges are. I'll write about them if we ever go Weimar.
From MarketBeat:

With the U.S. economic data strong, the Fed’s foot on the accelerator, Iran-Israel tensions high and crude oil prices above the century mark, expectations for future inflation are moving up too. Here’s the five-year breakeven, which measures the difference between yields on inflation-protected issues and those on conventional Treasurys.

You can see they’ve been moving sharply higher over the last few weeks, and they seemed to break out of their recent range after the Jan. 25 decision by the Federal Reserve to tell the market that they were likely to stay on hold until at least late 2014....MORE

And from ZeroHedge:

White House Comments On Surging Gasoline Prices

Just when we thought that when it comes to nonsensical announcements Europe is second to none, here comes the White House and takes the cake:

• WHITE HOUSE SAYS RISE IN GASOLINE PRICES CAUSED BY VARIETY OF GLOBAL FACTORS, INCLUDING UNREST IN SOME PARTS OF WORLD, FAST GROWTH IN OTHERS - RTRS

Uhm, would the "unrestful" parts of the world be those that have an above average US drone presence. At least we know that said price surges have nothing to do with the following chart:

As a reminder, we did note over the weekend that inflation is about to become the biggest concern of "investors" everywhere:

Oddly enough, one very crucial item missing is once again surging inflation courtesy of trillions in stealthy central banks reliquification, sending crude to the highest since May 2011, and the most expensive gas price in January on record.

Sure enough...MORE