Market Direction and Stock Trends

[DiscoverGold]

»» The Commodity Cycle ««
By: Marty Armstrong | May 1, 2021

To watch how this wave has unfolded with the shortages in commodities because of the lockdowns is just remarkable as you put it. This truth that the idea of exactly how strong the fundamentals are for commodities has not hit home for most. The press, central banks, and governments live in denial because they do not want to admit what they did has led to changes in trends in metals, agriculture, and energy today. These markets are now showing the steepest backwardation in more than 14 years making those forecasts I laid out 10 years ago come to life.

This premium for commodities that can be delivered now versus later into the future is the highest it has been since at least 2007. More importantly, this destruction of the basic structure of how and where people work will have profound implications from fulfilling our forecasts on the decline of urban centers and real estate. The rise in lumber is signaling just how strong the world’s demand is for raw materials has become and how tight supplies are as people have been building in the suburbs or expanding their homes as office buildings remain vacant...

DiscoverGold

Click on "In reply to", for Authors past commentaries