Brave New World: Agro-commodities in for bull market; stay-at-home trade picking up

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Ritesh Jain

Global Macro Investor & One of Top 3 Global LinkedIn Influencers on Economy and Finance, Mumbai

He is a trend watcher, Global Macro investor and Blogger at worldoutofwhack.com. He has over 20 years of experience in financial markets, bonds, equities, gold, and derivatives. He muses about global macro investment opportunities, economics, business, and financial issues.

Ritesh Jain, a Dalal Street veteran, trend watcher and Global Macro Investor, captures global macro investment opportunities and economic, business and financial trends with charts and commentaries in this space.

Food price inflation keeps going up. Led by grains hitting their fresh multi-year highs on crop worries and low stocks due to strong Chinese demand.

Year-on-year changes: Grains +72%, Softs +50% and livestock +59%.

I believe that we are starting a decade long bull market in “Agricultural Commodities”

Markets at important juncture

This will be bullish for markets

Stay-at-home trade has picked up steam since early March while reopening trade has stalled

Something is changing in the market.

Precious metals are starting to run with silver moving through its 50-DMA today and miners showing lot of strength

There is no doubt that action is promising…. Need to see a follow through.

Felix Zulauf’s interview on Real vision

My take: I believe that the Global economy is moving from a free market economy to a planned economy, where government decides the winners and losers.

I think it’s the inclusion that the government has to spend more money because the private sector doesn’t do it to create growth. So I think we are seeing a shift from a free market economy to a planning economy. And instead of having a free market resolution to the deflationary side, we get a changing shift in how the economy works. We are moving away from a free market economy to a planning economy where the government share keeps growing.

The government share in the US before these pandemic crisis the lockdown, was about 22 per cent. It is now the upper 30 per cent. In the EU, the average is 59 per cent. So more than half is government. France is 64 per cent. Germany, the best is at 54 per cent. So we are moving into more government type of planning economy. And the bear market and the deflationary collapse you see is freedom.

This article was originally published by Indiatimes.com. Read the original article here.