They've taken this counterintuitive approach because they believe the Fed will tighten monetary policy to fight inflation sooner rather than later. But we're starting to see a shift in sentiment. As Peter Schiff explains in a recent podcast, traders seem to be realizing that inflation might be here to stay, and that is bullish for gold and bearish for the dollar.

Last month, we started to see a rotation in the stock market with investors moving out of the "hyped up, overvalued" momentum stocks into more traditional value-oriented, dividend-paying stocks that are considered better inflationary hedges. The NASDAQ was the only index down on the month. The Dow up about 2% in May while the NASDAQ saw its biggest decline since last October.