A Case For Commodities in 2021

In this post:

  • The Dance Between the Dollar and Commodities
  • The Population Impact
  • Carbon Derived Energy Sources – Down But Not Out
  • Water, Water, Everywhere, Nor Any drop to Drink
  • Farmland – Producing More From Less
  • Mining for Alpha in Minerals and Metals

“When the time comes to raise interest rates, we’ll certainly do that, and that time by the way, is no time soon.”   – Federal Reserve Chairman Powell, January 14, 2021.

Most people are just fine saying sayonara to 2020.  The pandemic caused us to put life on hold as we waited for it to pass or for a medical solution to contain it.  The virus, as advertised, proved to be a heinous strain, and we are in the early innings of vaccinations which are being highly touted as a suitable defense.  We’re hoping vs knowing the spread of the COVID will slow, business will trend to normal, and we all get back to living without fear of contagion.

As we write, equity markets have continued to rally into the new year. The “stay-at-home” stocks have resumed their hyperbolic trend, and quite frankly speculation is morphing from excessive to manic. Case in point: Elon Musk mentions a messaging app called Signal on January 7th.  Within just a couple of days shares of Signal Advance rallied from 60 cents to $33!  This certainly qualifies as a hyperbolic move, but Signal Advance has nothing to do with the company Musk mentioned.

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