… if I use the words of Mark Yusko and make them a bit more general. Not that I don’t believe in bitcoin, but I think the whole asset class is here to stay and disrupt. Possibly big time!
While a lot of people are saying bitcoin is a scam, one should buy puts on every crypto, and while there are many ICO frauds, I am not so sure about the negative outcome for the asset class as a whole. I don’t want to go over all the reasons why, but I think it has a lot to do with the same reasons as why the stocks are in a bullish trend, e.g. money is super cheap, we could be in the beginning of a secular bull trend (see my post from Sep17, Why are you so pessimistic?), etc.
But there is another one which could push the prices higher. Nadaljuj z branjem “Cryptos are big, really big!”
I guess it’s needless to say that I am a commodities bull. After all, even if you haven’t followed my blog regularly, you can tell this from my last post. This doesn’t mean that the price of commodities will only go up. There will be short-term cycles with corrections, even very quick ones, to shake the excessive excitement. Similar to what we see in cryptos today. This is just normal market behavior.
While gold didn’t get much of an appreciation lately, it had a very decent year. But I think it was only a beginning. I think gold could easily double or triple in the months to come. Nadaljuj z branjem “The shiny metal and its miners”
Here it is, my first post in 2018. I won’t give you NY resolutions or something. Let me first give you a quick overview of my past posts to gain a perspective before we dive into today’s topic. I think this is relevant because some of these trends started in 2017 and they could pick up steam in 2018.
The theme that could be very big this year is a big rally in commodities in my opinion. I’ve been writing a lot about commodities and commodity related products/assets in the past. When oil was at $45 and everyone was screaming it’s going lower I was taking the other side. It’s above $60 now. When gold was at $1300 I was suggesting it could drop by $60-80 at which point it could be a great level to pick it up as a long-term hold. It did precisely that and is sitting at $1320 now. Not to mention bullish copper and some other ones. Even though the above calls went great not everything did. Cocoa (and other softs) showed some signs of life during the second half of ’17, but were very quickly brought back to reality; I wouldn’t call it a day just yet.
US dollar is very important to the whole commodities story. While I had second thoughts about my bearish thesis as I see some head winds at the moment the dollar continued its slide lower. If my assumption is correct and the dollar continues what is doing, this would be a great tell and an even bigger tail wind for commodities. Nadaljuj z branjem “The year of commodities?”