Bulls had trouble yesterday getting the stock market to go up much more. Part of the reason is that CNBC reported on comments made by Jerome Powell that he takes inflation seriously and that the Federal Reserve will keep raising until inflation goes away. Some saw that as hawkish, but last week Powell claimed that all he needs to do is get the Fed Funds Rate into the 2.50% – 3% range next year and it will just vanish on its own.
It doesn’t really matter when it comes to bonds, because they are in a secular bear market now.
And commodities are in a secular bull market.
Even if the bulls can get the stock market to rally more here those two underlying trends are not going to change.
Yesterday, saw a big bid in the soft commodities market and corn jumped again.
The stock I am actually up the most in my main account is Mosiac.
There are some energy stocks that look like this too.
And NEM soared the other week.
As far as the stock market, it looks like it’s set to pause a few days before making a more meaningful move.
The bullish underlying commodity trend of course helps my top small cap stock for this month.
Find out about it here.
-Mike
