Here is a look at gold approaching a massive cup & handle breakout, plus a look at a major inflation catalyst.
The Golden Breakout
April 3 (King World News) – Graddhy out of Sweden: Gold has proved itself a lot last few months.
A cup & handle is often a bullish continuation pattern. And maybe also a halfway pattern in this case.
Now all eyes are on that orange resistance zone.
Gold Approaching Massive Cup & Handle Breakout
Crude Oil – Inflation Catalyst
Otavio Costa: Oil and gas companies have massively de-levered in the last couple of years.
They now have one of the healthiest balance sheets in 30 years.
Additionally, these stocks have never been cheaper on a free-cash-flow basis…
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The recent influx of capital in this sector is right at the center of the growth-to-value rotation in overall equity markets.
This is likely to be a long-term trend supported by a higher-than-average inflation and cost-of-capital environment.
Not The Same As 2008 Global Financial Crisis
To address the recent comparisons with 2008:
Today’s macro setup could not be more different than the Global Financial Crisis.
Back then, capital spending for oil producers was at record levels after a decade-long bull market in natural resource businesses.
Today, aggregate capex is historically depressed while the commodities-to-equities ratio is near 50-year lows.
Here’s What Happened 1973-’74
It’s important to consider the cross-asset correlations during the stagflationary crisis of 1973-4:
Tangible assets and resource businesses rallied drastically despite the collapse in stocks and bonds.
Yes, one could claim that the oil embargo event was quite unique for this comparison.
However, investors should not ignore the list of key tailwinds driving the energy market today:
ESG mandates, ongoing political efforts against commodity businesses, incredibly tight supply, and rising geopolitical tensions, etc.
ALSO JUST RELEASED: Gold Surges Above $2,000 Ahead Of The Collapse Of The Super Bubble CLICK HERE.
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***To listen to Gerald Celente discuss the death of the dollar and gold skyrocketing CLICK HERE OR ON THE IMAGE BELOW.
***To listen to Alasdair Macleod discuss the silver squeeze and the lack of available physical silver supplies CLICK HERE OR ON THE IMAGE BELOW.
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