In the current market environment, many investors are positioned in what they perceive to be ‘defensive’ market segments, such as healthcare, telecoms, staples and utilities. To us, this is the wrong choice!
As stock markets massively turned the corner in the recent weeks, most sectors are looking into the abyss again. Even gold stocks were put out with the garbage, while the price of gold keeps leveling aloft $1,500. What’s the deal with these golden equities?!
Markets around the world are still creeping higher, while economic fundamentals are crumbling everywhere. And there are more signs on the horizon that things about to make a change for the worse: collapsing cattle prices!
While the commodity complex has been on a tear ever since the global recession cooled, there is one commodity that has been going nowhere: Natural Gas! Yet, we have been receiving hints that this game is about to change.
With all eyes on the commodity sell-off, none of the popular media carousel (except for Zerohedge) was mentioning the euro crash/ dollar rush. This smells like a dollar short squeeze to us: a paradigm shift?