Hackett on Cycles
The Pause we have seen in overall Commodities since the Russian invasion in Ukraine in February, that will likely continues in aggregate heading into the spring/Summer of 2023 is offering another generational buying opportunity to the one that was offered in 2020.
The culmination of the 16 year inflationary bearish US Dollar currency cycle, the approaching inflationary crescendo of the 53.5 year war cycle, the inflationary expanding 220 year Grande Solar Cycle weather volatility cycle and extraordinary weather volatility event of a 1 in 100 year 90 year Glassberg drought cycle are pointing towards a rare commodity inflationary wave leading into and through the year 2026.
Agricultural commodities should lead this overall historic commodity inflationary wave of culminating cycles. End users need to be looking for opportunities to procure long term needs from now into the summer of 2023 and traders and investors need to be doing the same. With a major climatic shift to El Nino in 2023, stay focused on those markets that benefit the most from this cycle which are cocoa, sugar, rice and livestock especially the cattle market. The winners under la Nina will become the laggards in 2023. Stay tuned