Commodities are in the early innings of a secular bull run.
The list of raw materials hitting all-time highs since 2020 includes Gold, Copper, Wheat, Soybean Oil, Cattle, Orange Juice, Cocoa, Heating Oil, Gasoline, Palm Oil, Lumber, Tin, Rebar, Iron Ore, and Coal. (If that roll call doesn’t scream commodity supercycle, I don’t know what does.)
It’s an exhaustive list that will only grow in the coming years. Remember, these cycles can last decades. We’re only in year four!
Of course, there are also some laggards amongst the ranks. (ahem, Crude). But don’t lose sight of the bigger picture!
Even Soybeans are queuing up for new all-time highs…
Check out soybean futures zoomed out to the 1950s:
Are you prepared for a market environment where Commodities are ripping higher and stocks continue to struggle?
Don't worry, most people are not.
In fact, so few people are prepared for this line to go up, and so much pain will be felt by so many (investors or otherwise), that this is exactly the outcome I'm betting on.
Gold is up for the sixth day in a row – and it looks like this week’s breakout might be the real deal.
If it is — and gold continues to rip — it’s only a matter of time before copper breaks out too.
Check out the overlay chart of gold and copper futures:
Where gold goes, copper follows. Or perhaps they simply enjoy similar paths.
The rhyme or reason makes no difference. During a commodity bull run, precious and industrial metals will enter a broad markup phase. Gold will not take off on a rip-roaring rally without copper by its side.
These days, it’s all about cattle futures, orange juice, or cocoa hitting an all-time high.
I’m sure everyone down at the NYMEX or the folks over at the CBOT in Chicago are having a ball. But what about the stock traders trying to get a piece of the action?
Sure, the energy trade is starting to work again. But gold has been a range-bound mess since the summer of 2020. And gold mining stocks have been an absolute dumpster fire.
It just doesn’t make sense amid a commodity bull run…
