As soft commodities (Corn, Soybeans, Wheat) taking on multi-year highs,
see how they are pushing stocks of Fertilizer companies.
If you are still obsessed with Bitcoin, pls note that its younger brother Ethereum is up 45% in 4 days!
The setup for Value stocks outperformance is very favourable:
1) early cycle recovery is happening
2) inflation is picking up
3) Value is extraordinary cheap compare to Growth
And, the world needs Banks (need mortgages and Loans), Industrial companies (need products to sell on Amazon), and Oil producers (you need Fossil Fuels to charge your Tesla)…
We observe 3 compounding primary reasons for inflation to be high:
Haven, the Amazon-Berkshire-JPMorgan venture to disrupt health care, is disbanding after 3 years
Remember, that this “Haven” was launched with a big fanfare that the smartest brains in Finance & Tech would finally solve the Healthcare nightmare that the US faces…
Well, the US Healthcare is fundamentally unsolvable for a simple reason:
Healthcare exhibits a classic case of Market Failure, because in Healthcare, fundamentally, pricing doesn’t assure best allocation!
Unlike in most other industries…
Many reasons for that – pls revise textbooks on Microeconomics.
To solve the Healthcare in the US, one has to revert to price controls and regulation as they have in Europe, Canada, Australia, Japan, with much, much, much better outcomes for the population….
What is bizarre about the Technology sector and its ambition to innovate, is that out of top 3 largest companies, both AAPL and MSFT were founded decades ago.
Even though the price of crude oil is exhibiting decent progressive recovery, the Energy stocks are underperforming because the price of the Natural Gas is down a lot.
