I have been harping on commodities for a long time now. Way before they even made their move.
While I am still not in the inflation camp in terms of the way CPI. I am very much in the camp that
commodities will continue to soar till the market cracks. Excessive deficits that lead to excessive
savings will lead to money flows causing commodities to soar. This is very bullish for cpmpanies
like DSX I would add TNP in that category as well. I have already featured this nice setup here.
Back on March 16th, I posted WHAT IS DRIVING INFLATION FEARS?
As you can see commodities are leading the 10 years yield higher.
As posted before on Feb 24th, commodities were at a key area and hitting resistance and possibly
topping.
Since then we have broken out and now in open waters, for commodities to run much further.
I will keep saying it. No Govt can print value for a currency Govt can only create digits. It is
up to the private sector's ability to keep up with digit growth in order for the digits to be valued.
That is not possible when deficits are 30% ($6 trillion) to Real GDP. therefore asset price inflation
is inevitable. We have seen it thus far in stocks, bonds, real estate, and now commodities that are
on the verge of exploding. While the FED says we see no inflation, Fiscal policy, QE, ZIRP are not to
blame. Many highly followed "financial, Macro, Economic experts" on social media have echoed that
sentiment. I have adamantly disagreed with them publicly! I will let you be the judge as to who is right.
Back to DSX. To me this bottleneck industry (shipping) is the last value stocks left in the entire market
worth buying on the breakout. if you are just a trader this might not fit your time horizon investors
will be well rewarded!
The risk is that the markets crack and implode. IN that case, I think DSX would have a hard time pushing higher.
While I am still not in the inflation camp in terms of the way CPI. I am very much in the camp that
commodities will continue to soar till the market cracks. Excessive deficits that lead to excessive
savings will lead to money flows causing commodities to soar. This is very bullish for cpmpanies
like DSX I would add TNP in that category as well. I have already featured this nice setup here.
Back on March 16th, I posted WHAT IS DRIVING INFLATION FEARS?
As posted before on Feb 24th, commodities were at a key area and hitting resistance and possibly
topping.
Since then we have broken out and now in open waters, for commodities to run much further.
I will keep saying it. No Govt can print value for a currency Govt can only create digits. It is
up to the private sector's ability to keep up with digit growth in order for the digits to be valued.
That is not possible when deficits are 30% ($6 trillion) to Real GDP. therefore asset price inflation
is inevitable. We have seen it thus far in stocks, bonds, real estate, and now commodities that are
on the verge of exploding. While the FED says we see no inflation, Fiscal policy, QE, ZIRP are not to
blame. Many highly followed "financial, Macro, Economic experts" on social media have echoed that
sentiment. I have adamantly disagreed with them publicly! I will let you be the judge as to who is right.
Back to DSX. To me this bottleneck industry (shipping) is the last value stocks left in the entire market
worth buying on the breakout. if you are just a trader this might not fit your time horizon investors
will be well rewarded!
The risk is that the markets crack and implode. IN that case, I think DSX would have a hard time pushing higher.
Comment:
Magic!
Comment:
New Highs again! MAGIC!
Real Macro Economic Investing
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