Don’t buy at the wrong time

This chart below (and commentary) shows you when you should be buying Aluminium or associated proxies (such as Alcoa) and the power of operational leverage that a corporation can provide shareholders.

The blue line is the rolling 200 week moving average.

Gravity does exist.

While the theme of “having industrial capacity in moments of output gaps” remains intact, at this moment, it is a sellers market.

Beware of chasing the bullish (metals and energy) commodity prices higher.

It’s also the start of an odd period where higher prices of finished goods (due to the higher price paid by buyers of raw/base/industrial commodities) may be left on the shelf.

Rising prices have been evident but we can’t assume that higher prices are automatically paid for.

February 18, 2022

by Rob Zdravevski

rob@karriasset.com.au

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