Loading ...WOW PROSPERITY
Major Prosperity is breaking out !
No way this happens in a recessionary environment.
SOMETHING HAPPENED AT THE BEGINNING OF THIS YEAR !
CPER (copper etf)
DBB ( BASE METALS ETF)
XLE (ENERGY PRODUCERS)
This is a surprise to me…BUT…it is a NO DOUBTER…PROSPERITY AS FAR AS THE EYE CAN SEE
WOOD
STEEL
Someone in the Deflation / contraction camp ( where I have been lately) tell me what I am missing here
RIO and BHP are speaking in NO UNCERTAIN TERMS….commodities are set to explode….must be another mega expansion around the corner
n’est pas ?
There is no ‘post bubble contraction’ inflation is there if you look properly.
If you add $WTIC on the same chart as BHP or RIO the 2 correlate like the Yen and $GOLD. It makes sense: as goes oil, goes these big commodity companies’ stocks.
“Someone in the Deflation / contraction camp ( where I have been lately) tell me what I am missing here”
As I mentioned here back in January, we all were calling it Shanghai Accord 2.0 (google if you don’t follow). Pull up a chart of the PBOC’s balance sheet, weekly, going back to Q4 at least. They went on a dramatic reflationary buying spree from mid Dec well into Jan. Buying record amounts of securities.
Note the sharp upturns for PBOC and Japan at the end of 2018/early 2019.
chart:
https://confoundedinterestnet.files.wordpress.com/2019/01/pbocv.png?w=1100
source
https://biiwii.com/2019/01/18/chinas-central-bank-now-has-worlds-largest-balance-sheet/
text “The PBOC has injected almost $1.1 trillion in the market over the past two days.”
+1 to Pedro. I have been buying lots of Chinese equity ETFs the last couple weeks.
Seeing chart breakouts on various Chinese A shares ETFs which one can view here:
https://www.triplehstocks.com/2019/03/31/chinese-equity-etf-sector-rotation/