At The Forecast we trade a wide variety of asset classes for good reason. We are constantly in search of trades that produce large trending moves where investors can sit for a period of months and watch their accounts grow. Day trading is tedious and 95% of investors fail at it. Long term investing is always a viable option, but gains are capped at an average of 12%-15% over the last 20 years and subject to large corrections. Our trading style is a hybrid between the two and can produce tremendous returns on an annual basis. Last year our booked trading profit was approximately 300% and is verifiable on our site.
This week we will offer a progress report on some of our major trending trades for the second quarter.
We expect energy to rise sharply into the end of the second quarter. Pent-up demand, decreased rig counts, inflation, and restricted domestic drilling policies will all push oil and gas higher.
Corn, wheat, and soybeans have each surged in response to growing food demand, COVID supply chain disruptions, and inflation. We expect this trend to continue into summer.
Gold double bottomed in late March where we took positions a couple of weeks early, but in a bull market like this all trades will lead to higher prices. We expect price to surge into the third quarter for the entire precious metals sector.
For the experts out there screaming that rising interest rates are bad for risk assets – in particular gold – please refer to the chart above highlighting an extreme inflationary period between 1976-1980. When interest rates modestly move higher, most risk assets are temporarily pressured. However, when rates rise too fast public confidence erodes in government and investors flock to precious metals. We are in a similar time period from now into 2024.
Our forecast for rising equity prices into mid-year is right on track. Stocks can move higher with inflation at first, but expect a shock to equity markets to occur over the summer in response to rising costs for manufacturers which will lower revenue until the inflationary shock is absorbed into the economy.
There is still significant upside left in a number of these strong trending trades. There will be sharp pullbacks providing good entries along the way. If you are not a Gold Member yet, consider a free trial to access our model portfolio, new positions, and market research on a nightly basis.