Inflation Spike Won't Propel Gold, Beware Biotech Rally Trap

The recent uptick in inflation will not be enough to drive gold prices significantly higher, said JJ Kinahan, strategist at TD Ameritrade. Kinahan maintained that inflation remains a secondary concern, especially with a negative GDP in Q1, so investors should not jump on the gold bandwagon despite its recent strong performance. Similarly, Kinahan said investors should be wary of the advance in energy shares because higher oil prices act as a tax on the consumer, which can undo any rally. Finally, Kinahan said beware the run-up in biotech stocks because it remains speculative, and investors may quickly abandon the sector in favor of dividend paying stocks.