Are You Positioned for Quad 2? I hope you're ready
We're already in the midst of record runs in the equity and commodity markets but as bubbly as it seems, its not over.
We are in an environment that not many people are familiar with. The last time Growth and Inflation on a global scale were accelerating as fast as they are now was immediately after World War 2. Previous commodity cycles were sparked by 1 or 2 catalysts. The current macro setup has nearly the most accommodative and bullish catalysts for global growth and inflation that we could imagine. Fed on autopilot, Fiscal out the wazoo, supply chain disruptions and shortages everywhere, all major political interests want a weaker dollar.
Given that is the case and YoY GDP will probably show about +10% and CPI +3% in the 2nd Quarter, there's a good chance this current run, especially for commodities, could continue for a couple more months before a major correction.
Things I have been and remain bullish on: Potash, Sugar, Wheat, Soybeans, Corn, Cocoa, Coffee, Orange Juice, Copper, Uranium, Crude Oil, Natural Gas.
I've added to my exposure recently Aluminum, Nickel, and Coal.
We are in an environment that not many people are familiar with. The last time Growth and Inflation on a global scale were accelerating as fast as they are now was immediately after World War 2. Previous commodity cycles were sparked by 1 or 2 catalysts. The current macro setup has nearly the most accommodative and bullish catalysts for global growth and inflation that we could imagine. Fed on autopilot, Fiscal out the wazoo, supply chain disruptions and shortages everywhere, all major political interests want a weaker dollar.
Given that is the case and YoY GDP will probably show about +10% and CPI +3% in the 2nd Quarter, there's a good chance this current run, especially for commodities, could continue for a couple more months before a major correction.
Things I have been and remain bullish on: Potash, Sugar, Wheat, Soybeans, Corn, Cocoa, Coffee, Orange Juice, Copper, Uranium, Crude Oil, Natural Gas.
I've added to my exposure recently Aluminum, Nickel, and Coal.