This year we have seen oil prices go to new highs not seen since last March, which is helping to push energy stock up now, but oil prices typically lag other commodities in a commodity bull cycle and the reality is that most commodities are indeed up more than oil. Copper went on a tear last year, along with several other metals, but the agriculture “soft commodity” complex did too. Just take a look at this chart of corn futures and you’ll what I mean.
You are looking at a 75% increase in coin prices since last August. A lot of people on social media are talking about recent Bitcoin moves, but you can’t do anything with Bitcoin except stare on it on your phone if you put money into it. Corn is real and corn prices matter, because people eat it.
Inflation is coming. The good news is that this week has brought with it a pivot buy point for gold for those that can take advantage of it. This is also why I believe that the global bond market is truly in the process of making a secular cycle shift that just about no one is taking any notice of.
When commodity prices rise and global trade increases, which it will from last year’s collapsed level, you typically see shipping rates go up and shipping stocks with them. I own a few shipping stocks that look like they are in a good position now.
Check out these two for instance.
EURN is an international shipping company, mostly involved in operating oil tankers.
Meanwhile, SFL is paying an 8%+ dividend and is forming a potential reverse head and shoulders major “W” bottoming formation. It operates a fleet of 80, which includes a mix of oil tankers, container ships, and bulk vessels. A close above its 150-day moving average at $7.39 will complete the “W” bottom.
As far as “W” patterns go, they remind of the classic 1963 movie Its A Mad Mad Mad Mad Mad World.
There is real money in “W” bottoms in stocks paying big dividends. Dividend payments mean money and there is no more real money than gold. Bitcoin is crypto crap. I rather invest in a “W” pattern in a stock, which represents an ownership interest in a company doing something in the real world than in a virtual currency like Dogecoin. Virtual paper is junk that isn’t even junk in the real world. Don’t let anyone try to make you feel bad for “missing out” on some virtual coin, because those talking about it now on Facebook will never tell you when they sell and if they never sell they’ll never make money off of it, just like Gamestop players who got in two weeks ago on that one and now feel like big Zeros!
-Mike
