RE:RE:RE:Commodity Deflation coming SoonAir Canada has great travel demand for now but once the travel revenge phase ends then they have problems. Add on a weakening economy and surging fuel prices as huge threats.
For Verde, we are at resistance now around C$7.25. If this doesn't hold then we are going down below C$7 with strong support around C$6.70. I have been very slowly picking away for the long term value play of this stock which I think is intact. Decades of underinvestment in producing capital intensive products especially commodities will not be solved by interest rate increases (though I admit will destroy some demand but not all). At the end of the day, people have to eat.
Even in oil and gas, the price will remain elevated as there simply is not enough being pumped. The inventory levels in Cushing are dropping daily and this is with government releasing millions of barrels from the SPR and China just coming back online. US refining is even tighter.