Stock Market Today: Commodity Leads Again

June 1, 2021, 10:01 am EDT

Commodity Leads Again

Commodity leads the stock market again on the first day of June. Energy shows many new breakouts (DVN, MRO, APA, OXY, EOG). Materials also bring a lot of emerging leaders in precious metal gold-silver and basic materials in copper, steel, etc. 

The Fallen US dollar forces the commodity to rise up in order to compensate for the loss in quantity. 

The inflation era is coming which would terminate the over-heated economy. The housing market would suffer from rising interest rates. Technology companies would feel the pain of higher borrowing costs. Manufacturers and businesses would have a hard time surviving because of the smaller profit margin because of the high cost of raw materials. 

Stock selections would become more challenging. But, it is still possible to do well by focusing on commodity and defensive stocks.  

Share This Post
Have your say!
00

Leave a Reply