NATGAS (ET PAA KMI NWN ENB ) , Grains and Corn managed-money futures positions (hedge funds) have reached the most extreme net short (vs. open interest) since 2006. Diminishing bear market room in corn (grains) may be turning attention toward crude oil. Courtesy: McGlone BI posts.
On a separate note -
While these returns may appear modest in today’s speculative environment, such movement in a macro asset of this magnitude could unleash other important trends that are long-overdue.
Currently priced for failure, the mining industry stands out as one of the best distressed opportunities, in my view. Additionally, it's worth noting that historically, every gold cycle has synchronized with a cycle for other commodities, often boosting the valuations of resource-rich economies like emerging markets.
The drop in implied volatility of call options on gold to historically low levels may signal an upcoming surge in gold prices, potentially impacting the mining industry and related markets. Here are the key points to consider:
- Historically, low volatility in gold options has been followed by substantial price increases, given gold's role as a major macro asset.
- The undervalued mining industry may see growth if gold prices rise, offering potentially high returns for investors.
- Gold cycles have historically impacted broader commodity cycles, driving up the value of resource-rich economies.
- Increasing exposure to gold and related industries could provide portfolio diversification and help manage risk during uncertain economic periods.
In summary, this situation may present promising investment opportunities in the mining industry and related markets. It's important to conduct thorough research and assess individual risk tolerance before making any investment decisions.
- Historically, low volatility in gold options has been followed by substantial price increases, given gold's role as a major macro asset.
- The undervalued mining industry may see growth if gold prices rise, offering potentially high returns for investors.
- Gold cycles have historically impacted broader commodity cycles, driving up the value of resource-rich economies.
- Increasing exposure to gold and related industries could provide portfolio diversification and help manage risk during uncertain economic periods.
In summary, this situation may present promising investment opportunities in the mining industry and related markets. It's important to conduct thorough research and assess individual risk tolerance before making any investment decisions.
Lastly, the delinquencies are at 20 year high.
Massive insider sells across the board -
WMT Insiders sold, JPM's Dimon sold, Bezos sold
