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How to take advantage of the impending commodity super bull cycle - Andy Hecht

Kitco News

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(Kitco News) - After months and weeks of uncertainty and turmoil Americans are now heading to the polls to cast their vote in what is expected to be an unprecedented Election Day.

However, according to one market analyst, financial markets are now looking past the results, and the horizon looks bright for the entire commodity sector. 

"It doesn't matter who is elected; the U.S. government is going to spend a lot more money to support the economy," said Andrew Hecht, partner at Bubbatrading.com, in a telephone interview with Kitco News.

Hecht added that with all the money central banks and governments have pumped into the economy and the expectation that more will come, inflation is projected to run rampant.

"So far, the U.S. government has spent $3 trillion to support economic growth and that is going to lead to significant inflation," Hecht said. "The trend in inflation is beyond politics right now, and it is going to be unstoppable."

Although Hecht sees strong potential for gold and silver in the coming years, he added that all commodities are going to benefit.

"Now is the time to have exposure to broad commodities," he said. "This is just the start of a super bull cycle for everything from base metals to agriculture."

Investors wanting a roadmap to the impending commodity price explosion, Hetch said that they only need to look at the last financial crisis. In 2008 the Federal Reserve introduced quantitative easing to help provide support for the economy that was devastated by the Great Financial Crisis.

Hecht said that from 2008 to 2011, as markets digested historic stimulus measures, copper prices hit an all-time high, pushing above $4.50 a pound. Meanwhile, gold prices pushed to an all-time high above $1,900, silver prices went to nearly $50 an ounce. In the grain markets, corn prices hit all-time highs in 2012.

"2008 was the fantastic start for a three-year commodity rally," said Hecht. "The money that the government is spending has dwarfed what happened after the financial crisis. I think 2021 is going to be a great year for base metals and grains."

With significant opportunities looming in commodity markets, Hecht said that he and Todd 'Bubba' Horowitz are launching a new trading service where investors can take advantage of an automatic execution program that follows the trends in the commodity markets.

Hecht said that they had created eight different portfolios, representing the different commodity sectors. He added that investors will be able to develop a diverse commodity portfolio.

Hecht and Horwitz will be hosting a webinar Nov. 7 to talk about their macro outlook in the commodity sector and how investors can get exposure through their new trading program. Investors can link this link to sign up to the webinar. 


Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.