We get hit with way too much propaganda and not enough honesty, whether from Federal Reserve Chairman Powell, Treasury Secretary Yellen or countless TV pundits.
Of course, people like Powell and Yellen are rather corrupted individuals, co-opted by the system they work to protect that benefits those at the very top, the so-called one percent of the one percent.
Excessive inflation done by the Federal Reserve both under Yellen when she was chair and Powell, through the evil of Quantitative Easing, first caused a long bubble in stocks, which began to burst on 7-November-2021. Because of that burst, trillions of dollar currency growth, the result of that QE inflation, has found its way into commodities of all kinds, but mostly oil and natural gas.
From the 2009 Low to the 2021 Peak
Wilshire 5000 in Ratio Scale
Rightly, one way to look at things is from the March 2, 2009, low of the Wilshire 5000 to its last peak November 7, 2021. To make for a comparative analysis, I have turned prices into index numbers.
Table as of 23-June-2022
For the live table, jump to the end.
Defensive Versus Offensive
The table gives you an idea of how to play defensively or offensively.
The strongest defensive plays include these: agricultural commodities, commodities broadly, energy, energy producers, gold, oil, oil and natural gas producers, utilities and to a lesser extent, base metals, oil and natural gas services providers, consumer staples.
The strongest offensive plays include these: Internet-based products providers, semiconductors, technology broadly, consumer discretionary, biotechnology.
Live Table
Since the peak, the bets yielded the biggest losses would have been on Internet related stocks.
The best bets would be on energy commodities such as oil and natural gas followed by commodities, broadly, which includes the effects of energy commodity prices, and the producers of energy commodities.
Anything tech related can be viewed as a discretionary consumer product. That includes green energy. Green energy is little more than a luxury consumer product.
As you can see, financial firms, industrial firms, and telecom firms fall in lockstep.
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