What happened in commodities this week?
This week was a complete bloodbath for both commodities and equities, with the Dow Jones Industrial Average dipping into bear market territory or the year.
- The top 3 worst-performing commodities this week were:
- Natural Gas: -12%
- Crude oil: -8%
- Platinum: -6%
- The top 3 best-performing commodities this week were:
- US Eggs: +29%
- Tea: +7%
- Orange juice: +6%
The DXY had the most-aggressive run I’ve seen it have, and is almost equal to the British pound now.
- DXY +3.8%
What is this week’s show about?
- The FED hiked interest rates by 75 basis points, and said it will keep pushing until it gets to “four, four and a half percent”. Though every 100 bps increase in the interest rates means over 300 billion dollars in additional interest payments on the US government’s 31 trillion dollar debt. The FED’s balance sheet has started to roll over but very slowly likely because they’re worried about not being able to pull a soft landing, which, as Lobo tells me, is already out the window.
- The US dollar continued its strong run, and Lobo believes that is causing the most pain for equities. He told me that the risk for commodity investors has increased greatly.
- Shelling at the Zaporizhzhia nuclear power plant continued without major issues as of yet.
- The Ukrainian ministry first reported that their energy minister had a conversation about banning (Russian) Rosatom, but then deleted that report saying that it was a misunderstanding and they actually talked about “renewable energy”.
- Warren Irwin, a successful hedge fund manager went on Mining Stocks Education and said that he’ll be selling uranium stocks ASAP.
- I interviewed Nick Jones, who is a professional commodity trader, for the “Regular Portfolios” segment.
What to Watch Next Week?
- Next week is mostly about what the central banks will say. FED officials, as well as ECB officials will be speaking.
- Additionally, US GDP will be reported on Thursday, as well as EU CPI (9.6% expected, versus 9.1% previous) on Friday.
Warning
Antonio Atanasov is not an investment advisor. Antonio Atanasov might own shares of companies mentioned in this publication. Always assume him biased. The information provided in this publication – and all other publications by Resource Talks – is impersonal in nature and meant for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple licensed, experienced, and qualified investment advisors. Get numerous opinions before taking your own decision in the end. The minimum risk on any investment mentioned in this publication is 100% loss of capital.
Shortly: you will lose all of your money and possibly most of your brain cells if you listen to talking heads on the internet. Especially if they have orange hair and no experience (me).
Readers are cautioned that this presentation likely contains forward-looking statements about expected future events and the financial and operating performance of any companies potentially discussed herein. Reality often varies from people’s expectations. Managements like over-promising and under-delivering. If a manager was speaking in here, beware. Readers are encouraged to read the Cautionary Note on Forward-Looking Information and to consult the Company’s Annual Information Form, which is available on www.sedar.com. Reading the full disclaimer on the disclaimer page on this website is mandatory.