Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Warren Buffett Buys a Copper Stock!

Commodities / Copper Feb 25, 2021 - 05:19 PM GMT

By: Gary_Tanashian

Commodities

Just kidding. Warren Buffett’s Berkshire Hathaway may or may not own copper stocks. I did not dig deep enough to find out. For the purposes of this post it does not matter.

With the Buffett Buys a Gold Stock! hysterics last summer, the subsequent (and inevitable) fallout and the Buffett Pukes a Gold Stock! resolution, you never know. It’s worth asking the question about what sort of investors are now true-believing in copper and the industrial metals where once upon a time last summer gold was the object of affection.

Look, the contrarian dynamics in play now are 180° from where they were last spring, coming out of the deflationary crash, when we first started to get a handle on and act upon the coming inflation aimed at reflating the economy. NFTRH has used a lot of indicators, starting then and continuing today to be on the right (inflationary) side of this macro dynamic. With all due respect and foresight about macro decision points to come, we remain on the inflationary side today.


Hence, gold is on the outs relative to cyclical assets subject to inflation/reflation, as it should be during such a phase…

Copper is thrusting upward in the cyclical bull market it broke into a few months ago…

The CRB Commodity index is starting to poke through a very important long-term resistance area…

So Buffett bought a gold stock at the top and sold that same stock, Barrick Gold, as the gold stock sector enters the final stages of its correction, which may end in a typical capitulation (we are updating the process and HUI targets in NFTRH updates and individual miners in NFTRH reports). Even at a new cycle low today, HUI has not yet touched the most optimistic of the open downside targets.

But I and I am sure a healthy number of subscribers are in a position of anticipation because there really is nothing new under the sun. When ole’ Warren bought Barrick last summer foremost bull horns in the gold “community” could not wait to broadcast, admonish and tout the news. Warren Buffett… ooh! It was a classic indicator of caution.

And so here we are today, with the macro flipped at a 180°. Wise guys far and wide are advising about how far the inflation-fueled bullish train is going to run. Whether focused on Copper/China, broader industrial metals or my personal favored areas of clean energy/battery metals and materials, everybody is on the Cyclical Inflation Express *. As implied in the previous sentence, that most certainly still includes me, and thus, NFTRH.

But we did not luck into the inflationary reflation early on. We did the work to be ready for it and understand why it was the most likely scenario. The upcoming decision point will be just that, a decision point. The herd looks smart now just as those bearish herds did against the deplorable backdrop coming out of the COVID-crash last March. But that is not how markets work.

At the upcoming decision point, this inflation is either going to get off the hook and morph into one for the ages or it is going to fail once again. Doctor Copper is riding high now and gold is on the outs. It’s a perfect setup. Either way, gold will have utility. Meanwhile, it works through a healthy correction.

* As printed by the Fed (monetary) and deployed first by the Trump admin and now by the Biden admin (fiscal). 

For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter ;@NFTRHgt.

By Gary Tanashian

http://biiwii.com

© 2021 Copyright  Gary Tanashian - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Gary Tanashian Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in