Commodities have never been so cheap

TL;DR

• Commodities are historically cheap compared to equities, suggesting a potential rise in commodity prices in 2021.

Transcript

hello it's john burford here with chart of the week for a brand new year today is tuesday the 5th of january and i'd like to wish you a happy and prosperous new year and i believe that this year will not be anything like the last year but let's get to the footsie here's the weekly chart of the the 100 and right away the most obvious feature of this... Read More

Key Insights

• 🫥 The FTSE 100 chart suggests a looming downturn due to a significant resistance line.
• 🎁 Commodities are currently undervalued compared to equities, presenting a unique investment opportunity.
• ™️ A spread trade between commodities and equities is recommended for potential gains in 2021.
• 😮 Historical spikes in commodities during crises indicate a potential rapid rise in the near future.
• ⚾ Strategic investments in commodities or commodity-based shares may yield substantial profits.
• 🥳 Considerations of the ratio between commodities and equities can guide investment decisions.
• 😮 The speaker predicts a rise in commodity prices and advises on potential trading strategies.

Questions & Answers

Q: What is the main feature of the FTSE 100 chart discussed?

The main feature is a massive horizontal line acting as resistance, indicating potential market movements and trends.

Q: Why does the speaker suggest investing in commodities over equities?

Commodities are historically cheap, offering a possible opportunity for substantial gains compared to overpriced equities in 2021.

Q: How does the speaker recommend trading commodities against equities?

The speaker suggests a spread trade or investing in commodity-based shares as a strategic play for potential profits in the current market.

Q: What historical examples does the speaker provide to support their claim of a potential rise in commodities?

The speaker references historical events like the oil embargo, Gulf War, and 2008 peak oil crisis to show how commodities have a history of spiking, supporting the prediction for 2021.

Summary & Key Takeaways

• The weekly chart of FTSE 100 shows a significant resistance line that may signal a downturn.

• Commodities are at historically low prices relative to equities, presenting a possible investment opportunity.

• Suggests a spread trade between commodities and equities for potential gains in 2021.