The only area of the market that has a chance to make it out of the great fires of 2022 are war stocks and commodities. We haven’t even seen a single German freeze to death due to lack of Russian gas. As NATO preps to increase its army to 400,000 from 30,000, it is inevitable that Russia and America will find itself in mortal combat by Fall. At that time, thanks to EU reliance on Russian energy — the entirety of Europe will be glassed over in ice.
If you’re not trading and interested in daily moves and instead prefer longer time horizons, I can think of no better area to “bet” on the market than energy and food.
The market might be down today — but commodities are way up and I would not be surprised to see an upside reversal predicate on nothing more than boredom and lack of grim news. The news is out there — but the market isn’t interested right now.If you enjoy the content at iBankCoin, please follow us on Twitter