I want the latest fashion to be seen on the runway, not in my portfolio

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This post was originally published on Trademakers

There’s a lot to be said about entering a market early, as it often yields significant returns. However, as investors, we must exercise caution and be mindful of the hype surrounding every new trend and designer.

As one might expect, I’m more of a classic guy. Suits and ties for the office, chinos and polos for the weekend—occasionally sporting some facial stubble, but never a man-bun (even if I could pull it off). Back in the 70s, during my youth, I experienced the glam-rock and punk periods, yet I always kept my fashion choices separate from my business pursuits because making money was always my top priority.

 

This strategy doesn’t always pay off. For instance, I have friends who bought Bitcoin at around $30, but I chose not to get involved, sadly missing out on a fantastic opportunity. On the other hand, I resisted the temptation to invest in pixelated monkeys or virtual land in the Metaverse, a decision that seems to have spared me from the losses suffered by some trendy celebrities.

 

I commend the developers behind these products, and it’s possible that some of these products may become highly collectible in the future. However, for now, these ventures don’t align with my preferences. When I look at the current values of NFTs, people’s enthusiasm to buy them reminds me of the fad for “Pet Rocks” in the 70s (Google it).

Being a straightforward and down-to-earth person, I prefer to invest in things that are simple and tangible. I’m more Frank Sinatra than Sam Smith, after all.

 

With this mindset, I favor investments with a proven track record of longevity, rather than what’s in vogue this week but will be out of style in a matter of months. This perspective’s importance should not be underestimated, especially during challenging economic times like the one we are currently experiencing.

 

Whether you’re a technical analyst who draws lines or a fundamentals enthusiast who reads between the lines, the economic outlook doesn’t seem too promising for most countries. Depression, recession, stagnation—call it what you will— the upcoming years are likely to be challenging. (For those tracking fashion trends, this might mean long dresses will make a comeback.)

 

If you’ve been following my reports over the past few years, you’re well aware that my outlook has been rather pessimistic for some time. I’ve consistently emphasized the importance of safeguarding portfolios through diversification, including investments in traditional assets like gold, rural property, and a basket of currencies, including BRICS currencies.

 

Overall, this approach has served us well in recent years. We’ve also added to our portfolio by occasionally taking advantage of short-term market anomalies.

 

Last week, I discussed the stagnant commodity markets. I’ve been bullish on gold for a while and suggested buying oil about a month ago, which has also performed well. However, my interest in the commodity sector is growing.

 

Commodity prices have remained depressed for some time, primarily due to China’s economic concerns and the problems it is facing in both the construction and manufacturing sectors. The problems in China, coupled with weak Western economies, suggest that commodity prices should stay low. Nevertheless, I believe that much of this weak economic outlook is already factored into commodity markets, and any future shocks could drive prices upward.

 

I wouldn’t be surprised to see certain metals, such as aluminum and copper, increase by 20% to 30% by year-end. We can enter speculative trades in these metals with relatively low risk. Similarly, I’m optimistic about the prospects for corn and wheat, and we could witness substantial gains in the foodstuff sector. I strongly encourage people to explore these markets and the potential they may offer at current levels.

 

While I’m hesitant to discuss a “commodity super-cycle” just yet, if your goal is to trade for profit rather than chasing the latest fad, commodities might be the place to start your search.

The post I want the latest fashion to be seen on the runway, not in my portfolio first appeared on JP Fund Services.

The post I want the latest fashion to be seen on the runway, not in my portfolio appeared first on JP Fund Services.

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