Crude oil and many other commodities continue to squeeze higher, it’s easy to say that’s enough lets take profit but the next week they’ve continued to grind out another fresh 2021 high and we all know human psychology makes it very hard to buy a market at a higher price than you’ve just sold it. As much as possible we like to keep things simple at MM i.e. keep it simple stupid (KISS):
- Crude Oil is enjoying an impressive bull market and we see no reason to fight the trend especially as so many fund managers have avoided these fossil fuels over recent years i.e. they are underweight stocks in the sector.
- At this stage of the economic cycle MM is still bullish commodities and inflation, delivering 2 good reasons to ride as opposed to fight this trend.
- As the price climbs a wall of worry / disbelief volatility is likely to increase but we can see the trend continuing well into 2022 e.g. another 6-months wouldn’t surprise and it certainly feels the path of most pain!
MM remains bullish crude oil
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