Commodities enter a broad-based bull market
The guest argued that a structural commodity bull market that began in late 2024 is expanding from precious metals and energy into agricultural commodities.
The argument
The guest noted that the commodity index bottomed in September 2024 and is up 30%. Geopolitical disruptions, such as fertilizer supply issues in the Strait of Hormuz, are acting as catalysts to drag lagging commodities like corn, wheat, and beans into the rally.
The thesis, stress-tested
✓ What validates it
- ✓Broad participation and price increases in agricultural commodities like corn and wheat
- ✓Continued upward trajectory of the broad commodity index
▸ Risks discussed
- ▸High volatility in energy and agricultural markets
- ▸Potential demand destruction if prices rise too quickly
Hear it yourself
"And he's talked about how first it started with precious metals. Now it's moving to energy. After that, it's going to move into agricultural commodities. Like, really, what you've seen is the commodity index bottomed in September 2024."
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