Copper and iron ore remain a risk in 2019 in the commodities complex. Zinc represents the best combination of strong fundamentals and low financial risk.
Key Points Discussed (original link and summary by Richard Snow)
- The Texas oil revolution
- Diminishing effectiveness of monetary policy
- Commodity prices and the Trade War ‘facade’
- Perverse incentives and the inverted credit cycle
- The Chinese debt load
- Forecasts and trading strategies for 2019
For 2019, the key factors that we need to think about are what is going to be the outlook on three levels: monetary, macro, and earnings. Watch my entire interview at Real Vision here. Continue reading Last Year Was Not An Anomaly. Outlook For 2019: Trapped by Liquidity
Years of low rates reduced capital expenditure and fueled a dangerous bubble. Now, real investment is back. Gross fixed capital formation is up 8 percent this year after years of stagnation, and capital repatriation exceeds $300 billion. Continue reading Should The Fed Change Policy?