In a recent interview with Kitco News, Goehring & Rozencwajg managing partner Leigh Goehring explains why it’s a good idea to hold commodities during a recession. “You buy commodities cheap at the end of a commodity cycle where all the investment has been pared back. It almost doesn’t matter what happens going forward,” Goehring described. “Periods of radical commodity undervaluation are related to the natural resource capital spending cycle, and it’s this capital spending cycle that leads to huge outperformance going forward.” In other news, experts are worried that the economy will be a casualty in the Fed’s battle with raging inflation. They’re warning that the Fed could signal its biggest rate hike in 40 years.

Kitco News/Anna Golubova
Silver’s ‘buy signal’ and why it is a good idea to hold commodities in recession, Goehring & Rozencwajg weighs in

Commodities might be the investment to hold during the next recession, with silver already starting to flash a “buy” signal, according to Goehring & Rozencwajg managing partner Leigh Goehring.

It is not advisable to start selling commodity assets based on recessionary fears, Goehring told Kitco News. The main reason is commodity markets don’t resemble the 2008 crisis, and investors risk selling at a bottom and missing out on a massive rally ahead.

Commodity prices are cyclical. And when they become extremely cheap relative to financial assets, they represent excellent opportunities that lead to years-long bull markets.

You can keep reading, here.

CNN Business/Allison Morrow
The Fed’s war on inflation may take the US economy down with it

Tuesday’s inflation reading wasn’t what anyone was hoping for.

The consumer price index rose 8.3% in August year-over-year, down slightly from July but more than the 8.1% economists had expected. If you take out the price of food and energy, core prices rose 0.6% from July to August — double what economists had forecast.

The surprisingly ugly CPI report undercut investors’ confidence and sent markets tumbling. The Dow fell more than 1,200 points, or 4%, while the S&P 500 and Nasdaq plummeted 4.3% and 5.2%. It was Wall Street’s worst day since June 2020.

Continue reading, here.

CNBC/Stephanie Landsman
Next rate hike will spark ‘dangerous game’ with state of economy, investor Peter Boockvar warns

The market’s violent reaction to hotter-than-expected inflation may usher in more losses.

Investor Peter Boockvar believes Wall Street is coming to grips with a painful reality: Inflation isn’t moderating, so the Federal Reserve won’t pivot.

“After next week’s rate hike, we’re going to start playing a dangerous game with the state of the economy. The next rate hike is going to be only the second time in 40 years that the Fed funds rate is going to exceed the prior peak in a rate hiking cycle,” the Bleakley Advisory Group chief investment officer told CNBC’s “Fast Money” on Tuesday. “We’re getting into treacherous waters.”

You can keep reading, here.

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