Have you noticed any inflation? Pasta price up, gaz price up, … Everything you can buy, price seems to go up! According to IMF, it is only temporary and if you say otherwise, you are a conspiracy theorist! I must be one then :-))
Covid Kingdom is still under construction and they want each and all of us to participate in this exciting new adventure where a few people own everything and you get nothing, you will be enslaved to your master. There is one thing however that will make them fail: they are extremely bad economists, they are playing with the money and the money is exploding right now into hyper inflation fireworks, which will signify the end of the game not too far away! Get Gold, get bits of Bitcoin and you should be safe.
Bulls are still out there, because plenty of cash is there so only few industrial constraints prevent from going higher faster. This is what we see on Semi Conductor index:
Price Channel have no specific sense but you see that the one I draw is in sync with medium and long term indicators. Only short term shows weakness. Silicium might be missing so companies like Qualcomm will only increase their selling price while waiting to manufacture more. There can still be a drop to 3000, which be a good oppoortunity to invest, especially in light of 5G deployments.
Coming back for a second on inflation, you can see below that ground coffee price has just doubled in 2021. Here is the deal: consider how many coffee you drink in a year, do you yourself a favor by buying stocks of a coffee company, they give dividends so you get free coffee!
I always mention oil on this blog, because without oil, our society will just stop! No more cars, no more plastic, … Green electricity will not replace oil. Take a note: green electricity will not replace oil. NEVER!
Crude oil is up 10% since last post. Good for your portfolio. Of course, you need to have many stocks of Exxon, BP, … if you want them to pay oil for your car with dividends. At least, it may buy you extra free coffee!
If you wonder why gaz is more and more expensive, just look at the chart: +128% since Jan 1st! This is not going to stop any time soon. Windfarms are deployed everywhere, but since wind is not a continuous supply, then you need a gas power plant to manage electrical grid. Gas supply being limited by other geopolitical issues, price can only go up!
Last one for today is Bitcoin. BTC is still quietly hanging around, gathering ressources for the next leg. This next leg will be up towards 100k$. That is because of wider adoption (Salvadore, …), it is safer than fiat money, it does not have a country (miners can hop to new country any time), transactions costs become faster and cheaper with Lightning network. While I expect price will go down to 35k$, I am waiting for this cheap entry!
That’s it for today. Until next time, trade safely!