Below are some of the most interesting articles, quotes and charts I came across this week. Click here to subscribe to our free weekly newsletter and get this post delivered to your inbox each Saturday morning.
The bull case for commodities is as strong as ever.
Commodity prices are moving higher driven by the following:
1) Reaccelerating US growth
2) Geopolitical uncertainty
3) Segmentation of global trade, and
4) Strong AI demand for energyhttps://t.co/Xn4xKGpboB pic.twitter.com/nefZvogVAj— Jesse Felder (@jessefelder) April 25, 2024
Still, energy stocks are historically cheap…
US Oil & Gas stocks are historically cheap to the broader market. pic.twitter.com/AwlMXIWzCj
— Bob Elliott (@BobEUnlimited) April 21, 2024
…even though the sector has become far more important to the economy in recent years.
"Shale has redrawn the map of world oil in a way most people don't seem to understand. It has changed not only the supply-demand balance but it has changed the geopolitical balance and the psychological balance." -Daniel Yergin https://t.co/KW5zx9fbc3 pic.twitter.com/FCi4g1g14B
— Jesse Felder (@jessefelder) April 23, 2024
Gold mining stocks are historically cheap, as well…
'Valuations of the world's gold producers, led by Newmont and Barrick, have rarely been as heavily discounted in the past 40 years versus the gold price as they are now.' https://t.co/tk5OLBdy5n pic.twitter.com/12lidOsnpV
— Jesse Felder (@jessefelder) April 26, 2024
…even though the precious metal looks to be in the early innings of another secular bull market.
"Another wage-price spiral attributable to rising oil prices would be very reminiscent of the Great Inflation of the 1970s, when the price of gold soared. In this scenario, $3,500 per ounce would be a realistic target for gold through 2025." –@yardeni https://t.co/5eINSEOqHq
— Jesse Felder (@jessefelder) April 21, 2024
