Pierre Andurand sees upside potential in commodities.
Cocoa is taking the limelight, up over 70% since March.
Who doesn’t love scoffing into a bar of chocolate and taking a comforting break when the SHTF on multiple fronts?
Demand for chocolate remains buoyant.
On the supply side, the El Nino effect on the cocoa harvest season adversely impacts supplies. Geopolitical tensions and multifront wars are disrupting logistic supply routes.
“Cocoa is taking the limelight, up over 70% since March”
WEALTH TRAINING COMPANY
Pierre Andurand sees upside potential in commodities as global capital flows reconfigure
Throw all those ingredients into the cocktail and add the ongoing debasement of currencies, including the US dollar world reserve currency, and you have a bull market in commodities that could be just in its infancy.
Trillions of dollars of global capital are fleeing the false perception of the safety of bonds. With the US deficit worsening, the imbalance of the supply of treasury bonds and demand for them could also worsen.
The contrarian view of Pierre Andurand sees upside potential in commodities
A wider European war could also trigger a euro sovereign debt crisis, with investors fleeing the region. “Capital doesn’t grow wings and fly up to money heaven,” Gregory Mannarino.
Investors of EU bonds could seek shelter in calmer waters. At some point, rising treasury yields and a relatively strong dollar could prove the Dollar Milkshake Theory true as the US paper syphons global liquidity as Europe tears itself apart in a war.
“Investors of EU bonds could seek shelter in calmer waters”
WEALTH TRAINING COMPANY
Pierre Andurand sees upside potential in commodities, but it depends on USD performance compared to other currencies and gold
If capital flows into US treasuries, attracted by rising yields, that increases demand for dollars, which supports its exchange value, a strong dollar equals stable commodity prices.
But if the dollar melts down, commodity prices could continue to melt up.
Most of the world commodities are priced in US dollars, and 58 per cent of global trade is in US dollars.
A weak dollar means suppliers demand higher prices for their commodities, and vice versa.
If you can accurately speculate where the dollar is heading, you are more likely to get right the future price of nearly every other assets
“Futures in New York have jumped as high as $10,300 a ton in recent weeks, surging from the $6,000 level in early March” – Wealth Training Company
Pierre Andurand opened a “small, long position” in cocoa futures in early March. Since then, prices have soared as much as 73%. People familiar with the trade did not specify where the famed oil trader opened the position or whether he’d taken profits.
Futures in New York have jumped as high as $10,300 a ton in recent weeks, surging from the $6,000 level in early March.
Pierre Andurand thinks cocoa prices “could break $20,000 later this year.” Hyperfinlating cocoa prices are caused by drought and disease, which are ravaging the world’s largest cocoa farms in West Africa.
Pierre Andurand sees upside potential in commodities as a basket of commodities keeps heading higher
Here are the 8 best commodity ETFs if you believe the dollar is going to tank and you want an inflation hedge.
Rate:
