One of the commodity bull scenarios, the one I'm think is most probably right now, is the coming pullback in assets is less pronounced in commodities. Crude bottoms around $80 (throwing out a number, not a target), copper $4 and so on, while stocks suffer much larger declines. Avoiding losses in equities is the best move now, buying commodities and the new market leaders (won't be tech/growth broadly speaking) on the dip is the next move.
May 3rd COVID Update: Deaths Continue to Decline
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[image: Mortgage Rates]Note: Mortgage rates are from MortgageNewsDaily.com
and are for top tier scenarios.
*It is likely that we will see pandemic lows for...
Thanx for the shout-out. I agree with your diagnosis, but the one thing that prevents me from closing my inflation positions is the French election on Sunday, after which the EU is supposedly going to announce an embargo on Russian oil. This would send oil back up. My hunch is the EU has lost a battle -- Mariupol -- and so has to counterattack via sanctions, even if it means slitting its own throat.
ReplyDeleteOh, by the way, the pro-inflation ETF INFL also lost support yesterday.
ReplyDeleteFCPI similarly hit.
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