Why are oil and commodity producers climbing faster than global stock market indices?

Discussion in 'Stocks' started by Steve Ladd, Feb 22, 2021.

  1. I think of the broad indices as leaders and the commodity producers (COPX etc.) as followers. Granted, the producers had been driven into the ground. But surely the producers can't lead for very long.
     
    murray t turtle likes this.
  2. INFLATION IS COMING.
     
  3. SunTrader

    SunTrader

    Bottom in Baker Hughes Oil Rig Count last August was the tell.

    And as I notated on right hand side of attached chart you got till March of next year to "make hay", give or take a similar 6 month lag time. Absolutely, without a doubt .... maybe. ;)
    BHORC.png
     
    murray t turtle likes this.
  4. Arnie

    Arnie

    A lot of leading stocks have been rolling over past few days.
     
  5. 2rosy

    2rosy

    it's here. check your grocery bill
     
  6. Nine_Ender

    Nine_Ender

    This is pretty standard cyclical action in an economic recovery. Buying commodity related stocks when they are disliked often leads to huge returns; as much as top IT performers in many cases just not as high profile in nature. I based a lot of my trading in March 2020 forward on what I experienced in 2009-2010 and the mistakes I made in that time period ( mostly missed opportunities and selling winners way too early in things like copper stocks ).
     
    murray t turtle likes this.
  7. S2007S

    S2007S


    It's been here for quite some time.

    Just take a look at those ounces and pounds in most goods you buy.....less is more
     
  8. SunTrader

    SunTrader

    Ounces and pounds of ... smokable?

    :)
     
  9. CyJackX

    CyJackX

    I read that when inflation comes, energy does well.

    Things that are most flexible in pricing, ya know.
     
  10. Snarkhund

    Snarkhund

    They say that commodities are the place to be during hyper-inflation.

    Personally I think unemployment is too high for hyper-inflation to occur but I could be wrong and often am.
     
    #10     Feb 23, 2021