Commodities Boom Only In 'Early Innings', Much Higher To Go | Saxo Bank CIO

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Back in December, Saxo Bank’s Steen Jakobsen predicted a massive boom in commodity prices was dead ahead. Not many others shared that view back then.

But, boy, was he ever right. Commodity prices have exploded in the five months since that interview was recorded.

And more important, in his eyes we ain’t seen nothin’ yet. He predicts commodity prices are going to continue heading higher, a LOT higher, from here.

Why?

Growing demand for limited supply (demand push inflation). And further fresh $trillions in upcoming stimulus programs (monetary inflation).

Infrastructure around the world is being rebuilt — much of it badly needed. Tens of $trillions will be spent over the coming decade by governments now looking to such massive spending as a way to spur jobs and growth.

And in the more immediate future, Steen calculates 2021 economic growth has already peaked and sees a weaker Q3 ahead. He predicts the central planners will need to step in with new stimulus programs like we saw earlier this year.

Which is why Steen agrees that, now more than ever, it’s important to partner with a financial advisor who understands the nature of the market risks in play as well as the opportunities, can craft an appropriate portfolio strategy for you given your needs, and apply sound risk management protection where appropriate.

Anyone interested in scheduling a free consultation and portfolio review with Mike Preston and John Llodra and their team at New Harbor Financial can do so by clicking here:

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And if you’re one of the many brand-new viewers to Wealthion, we strongly urge you get your financial situation in order if you haven’t yet already done so.

We recommend you do so in partnership with a professional financial advisor who understands the macro risks to the market that we discuss on this website. If you’ve already got one, great.

But if not, consider talking to the team at New Harbor. We’ve set up this ‘free consultation’ relationship with them to help folks exactly like you.

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13 thoughts on “Commodities Boom Only In 'Early Innings', Much Higher To Go | Saxo Bank CIO

  1. The Financial capsule has successfully separated from the economic propulsion unit and is on it's way to the moon. The economic propulsion unit is sputtering out, and falling back to ground. Meanwhile, Elon is going to Mars!

    America is still in Space.

  2. The guest didn’t mention the commodity spikes of 2011 and sharp drops of 2012+. This was followed by QE3 and no recovery in commodities. If you bought at the tops in many commodities (gold, agri, lumber, …) you’re only now recovering your money. Gold will decline if stocks decline since it is used as a margin call hedge. Since rates are going up in the near term (the guest agreed with that) this will put pressure on stocks and gold. However, there is evidently plenty of money out there still flowing into stocks, sell offs (like the first three days of this week) were met with equal rebounds. Any guess where that money is coming from? A 70s style outcome would mean the Fed made a mistake, and the govt an even larger mistake, wage and price controls, much higher taxes, more “socio-economic engineering”, including a permanent put on equity markets.

  3. Next time you have a commodity bull on please ask what will happen to commodities if the stock market crashes. Thanks.

  4. Your guest is wrong. Commodities have almost peaked. Unlike CB's propping up the equities markets, there's a limit to what ordinary working people can afford for grains, metals, energy and softs.

  5. Great interview. Love how there is an open exchange of views. Very down to Earth participants and great humour.

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