Between Russia and Ukraine, ~25% of the world’s supply of wheat, or at least the amount on the export market, can go completely offline to “the west” at any moment. The ETF that tracks wheat (WEAT) is +21% today. Roughly 40% of the natural gas supplies to Europe come from Europe, so we have an issue now whereby war with Russia will become increasingly uncomfortable for many people. I have no doubt in our ability to innovate ways around this. At this very moment, I am certain Bill Gates and the band are trying to figure out how to make bread out from bugs, or heat your homes with the burning bones of human remains.
Either way, where there is tumult, there is also opportunity.
Companies that focus on potash or increasing crop yields are buys: IPI, MOS, CF, BG, FMC etc
Coal companies are buys: BTU, ARCH, METC, HCC
You can go down the nuclear route too, look at stocks such as CCJ, UUUU, UEC and LEU.
Price inflation hurts the poors most, so I am certain stimulus will be coming soon — which in spite of whatever the fuck Powell thinks he’s gonna do — rates will be coming down in a nightmare scenario of starving poors, runaway prices at the store, war, and of course nothing to heat your homes with.
Welcome to the great reset!
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What’s to keep the Europeans and US governments from implementing price controls on some or all of these commodities? I mean they’ve basically trampled all norms and processes in seizing rich Russians’ properties, closely all investment with Russia, destroyed their banking system, etc. all in the name of Ukraine democracy. Why can’t they just order private companies to cap prices in the name of supporting Ukraine?
No worries. They can and will resort to price controls. Problem solved!
Well not exactly. In the history of the world, sanctions and price controls have been used many many times. With Hunter’s dad at the helm I think they will work this time. He’s a shrewd and just plain lucky soog. Just because they NEVER worked before is no reason not to redouble our efforts. It’s different this time. “We” have elected the smartest man in the country as commander in chief. We cannot fail.
As simple example: You sell eggs for $1.50. Your costs are $1.00. Gross $0.50 you greedy bastard.
Prices are fixed at $1.50. Your costs go to $1.75. How many will you continue to produce and sell? People will pay higher but if you’re caught you are executed.
You produce Zero (except for yourself) which reduces supply further putting more upward pressure on prices. You stop working and lose less money or you open up in another country. Not Kanada
The only way around this is for companies like Sam’s Club and Costco to raise their membership fee significantly. Therefore, they can sell below cost while still turning a profit.
Not sure it’ll happen but it could work.
“Rates will be coming down”. LOL!
That’s been the trend for centuries. Try zooming out and/or looking at demographics.
So wary of the rate dependent rhetoric “to save the long term holders”.
God forbid, companies should profit organically, and invest in themselves, etc…..
Celiacs of the world, unite!
PM diggers …and GDX is worth watching here.
wheat I can live without. petroleum products not. we still have a lot of potatoes up here if you change your mind btw.
Thorchain (RUNE) up 50% in 7 days. Terra (LUNA) up 36% in 7 days.
TerraUSD (UST) is a $13B an algorithmically-governed, USD stablecoin
Thorchain is a DEX (decentralized exchange) that will soon enable transfers between UST and other coins without a middleman.
DYOR
If they’re not private, I ain’t buyin’
XMR and ARRR are private, as is DERO.