While conducting an end of year review, Serge came to the conclusion that we’re very clearly in a commodity and energy super cycle. While the length of a super cycle is usually hindsight, it’s looking like it could be from 5 to 20 years. For a long time, the energy sector wasn’t doing anything, and then between 2020 and 2022 it went up 50%. Energy stocks have gone from 3% of the S&P allocation to 5%, but could easily go up to 8, 9, or even 10%. For perspective, tech stocks make up about 26%, financial about 12%, and industrial about 9%.
With new technology coming on the market, and things like the electric vehicle revolution, the S&P allocation is bound to see some shakeup. As we move away from fossil fuels for example, electric vehicles will use things like copper and graphite.The future demand for these things will steadily increase over the next 5 years. Graphite for example, is forecasted to see a 17x demand. Even coal has seen a large increase. While it’s still a small percentage of all energy, we’re using more coal than ever. Long story short, energy is important to the human race and definitely isn’t going anywhere.
What You’ll Learn:
- The top reasons we’re still very bullish on commodities and energy.
- How trends in the stock market are calculated.
- How the electric vehicle revolution will affect the stock market.
- Why people are giving up commodities as an asset class.
Favorite Quote:
“Energy is such a trending part of the market and shows absolutely zero chance of ending anytime soon.” -Serge Berger
