{"id":68240,"date":"2024-05-19T17:20:06","date_gmt":"2024-05-19T22:20:06","guid":{"rendered":"https:\/\/olduvai.ca\/?p=68240"},"modified":"2024-05-19T17:20:06","modified_gmt":"2024-05-19T22:20:06","slug":"its-not-just-gold-this-is-a-full-on-commodities-bull-market","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=68240","title":{"rendered":"It’s Not Just Gold. This Is A Full-On Commodities Bull Market"},"content":{"rendered":"
\n

It’s Not Just Gold. This Is A Full-On Commodities Bull Market<\/a><\/h3>\n

Which, ironically, is a good reason to be careful<\/strong><\/p>\n<\/div>\n

\n
\n
\n

First, uranium had a nice run. But it was all alone for a depressingly long time.<\/p>\n

\n
\n
\"\"<\/picture>\n
<\/div>\n<\/div>\n<\/figure>\n<\/div>\n

That changed a couple of months ago as gold, silver, and copper began runs of their own:<\/p>\n

\n
\n
\"\"<\/picture>\n
<\/div>\n<\/div>\n<\/figure>\n<\/div>\n

Nickel, meanwhile, has staged a nice recovery from its brutal late 2023 flash crash:<\/p>\n

\n
\n
\"\"<\/picture>\n
<\/div>\n<\/div>\n<\/figure>\n<\/div>\n

The point? This isn\u2019t just gold breaking out of its trading range. We\u2019re witnessing the launch of a broad-based commodities bull market. And history says that once such a thing gets started, it can persist for a very long time (on the following chart, CAGR stands for \u201ccompound annual growth rate\u201d).<\/p>\n

\n
\n
\"\"<\/picture>\n
<\/div>\n<\/div>\n<\/figure>\n<\/div>\n

Another way of analyzing this trend is to compare commodities to equities. The next chart is a bit outdated but its point remains valid: Commodities are dirt cheap relative to the S&P 500, and if history repeats, gold, copper, etc., should outperform tech and financial stocks for another decade or two.<\/p>\n

\n
\n
\"\"<\/picture>\n
<\/div>\n<\/div>\n<\/figure>\n<\/div>\n

Keep a Cool Head<\/strong><\/p>\n

This is potentially a once-in-a-generation cycle, with \u201creal\u201d replacing \u201cfinancial” in the esteem of momentum traders. But don\u2019t jump in with both feet. The charts on this page contain multiple bull market corrections. And after the nice recent run, a double-digit percentage loss for many commodities won\u2019t be surprising.<\/p>\n

So continue to buy\u00a0high-quality commodities stocks<\/a>\u00a0gradually<\/em>\u00a0via low-ball bids, dollar cost averaging, or\u00a0put writing<\/a>.<\/p>\n<\/div>\n<\/div>\n

\n
\n
<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

It’s Not Just Gold. This Is A Full-On Commodities Bull Market Which, ironically, is a good reason to be careful First, uranium had a nice run. But it was all alone for a depressingly long time. That changed a couple of months ago as gold, silver, and copper began runs of their own: Nickel, meanwhile, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[151,7544,1138],"class_list":["post-68240","post","type-post","status-publish","format-standard","hentry","category-economics","tag-commodities","tag-john-rubino","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=68240"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68240\/revisions"}],"predecessor-version":[{"id":68241,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68240\/revisions\/68241"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=68240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=68240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=68240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}