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The global economy is now entering a new 9 year commodities boom cycle. This cycle started with the 2007 bottom in the commodities market with the market going to 2016. The stock market is in a 9 year decline. This means that we have a decoupling of the stock market from the commodities market in the United States Economy. The Asian, Australian, and Canadian economy are entering into a very strong commodity cycle which will last for the NEXT
9 YEARS! After the commodities cycle is over we will then have high inflation
in the United States leading to hyperinflation. So, the United States will have deep
deflation/depression economy for the next 9 years. The outcome will be a massive
inflationary blowout leading to a decade of inflation. We are in one sense in the beginning healthy stages of inflations and then peaking out around 2023. This means that investor need to rebalance their portfolio into a commodities based investments which are strong influenced by the following areas: (1) strong commodity etf; (2) commodity futures and options; (3) commodity based currencies; (4) commodities from energy, gold, grains etfs; (5) stock markets based on strong commodity based companies, i.e. stocks in companies that are based on commodies.
The Baseline data for the commodity bottom is the following:1. Oil hit bottom at $40.00 bbl
2. Gold hit bottom at $712.50 oz.
3. Silver hit bottom at $8.81 oz.
4. Wheat hit bottom at $4.86. bushel
5. Soybean hit bottom at $7.59 bushel
6. Corn hit bottom at $2.72 bushel
7. Copper hit bottom at $1.25 lb
8. Lead hit bottom at 61.72 cents
9. Zinc hit bottom at $57.42
Only 15% of the US Stock market has exposure to commodites in
the forms of energy and materials. The other 85% of the stock market
is dead in the water!
This is the playground for future millionaires and billionaires.
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