Categories: General Market Commentary- DPC
Topics: General Market Commentary- DPC

Profiting from the Commodity Bull Market

Since last week: 

A surprise cut in oil production kicked off a strong week for the commodity markets. 

1. The Looming Banking Crisis

According to some, there’s a new banking crisis looming. This one has to do with commercial real estate and the fact that many landlords and property managers finance through regional banks like Silicon Valley Bank. Loans are set to mature and rates are rising while occupancy is, at best, stagnant. It’s another thing you will have to keep in mind while preparing for the coming downturn. 

2. Oil Cuts

Crude oil prices rose in the past week following a surprise announcement from Saudi Arabia that production would be cut. This happened just as a recession looms, so it remains to be seen how sustainable this price rise will be, but for now, oil is one of several commodities making well-positioned investors richer. 

3. Gold’s Good Fortune

Gold prices are another commodity enjoying a recent rise in value. This was caused by market turbulence leading investors to seek out a haven, something gold has been known as for centuries. It’s now around the psychologically important $2000-per-ounce level and could go further from there. Now is the time to buy in. 

4. Crypto’s Strong Performance

Stock market troubles have also been a boon for cryptocurrency prices, with coins across the board gaining ground and holding that ground over the past week. This is just another example of market volatility creating opportunity as long as you know where to put your money. 

What to Look For:

Commodities could continue their upward trend while the looming banking crisis many are warning about becomes more apparent.

Ryan Stancil
Editor, Daily Profit Cycle