It Continues

This is the Black Swan.  The weather has begun to affect food production worldwide.  This is the news in just the last two weeks.

In South America, their harvests have been affected by cool, rainy weather.

In India, it is drought,

In Africa, drought.

China's wheat growing regions is under snow (8 inches this week), their rice growing region is under cool, rainy weather, and their corn region is, as well.

The United States is not immune either.  Late snow hit the Maine and the Idaho potato regions, Continual rainfall is hitting the upper Ohio valley, allowing only 8% of the corn crop to be put into the ground, and in the Midwest hail storms last week destroyed 10's of thousands of acres of corn and wheat.

Now the U.S. government can no longer hide this fact and are calling for falling temps for the back half of the year, and this might be the biggest La Nina on record.  About time they are catching up.

I discussed The reasons why are in a ebook I wrote on this very subject.  It is free, and it will help you survive and thrive in this coming decade.

My website , Just scroll down and request it.


Back to the black swan; rising food prices ties the Central Bankers hands as their only game is devaluation and you can't devalue when importing food during a deficit will kill your economy and/or your populations will starve.  Remember the 2008 rice scare, and the 2011 Arab Spring?  That is coming to nearly every country from now through the coming decade.  Buy Ag ETF's to hedge these events.  Don't be like this guy.

Best Stock Sector to Buy in June

Starting next week it is time to think about the trades for June, and the research I have compiled tells me that June is a relatively weak month (Second worst) and that there is only one sector that is green.
That sector is utilities.  Specifically XLU.  The good news is XLU is now pulling back, and will give us good entry point over the next couple of days.

Just Wow - World Famine Watch on the table?

Maine's potato crop is in jeopardy as a late spring snowstorm is hitting Northern Maine.  A record snowstorm, on top of a record year, on top of three prior record setting years.

La Nina Pattern is intact

 The world will not be immuned

 Hail crushing the grains in the Midwest last week

A Really Disruptive Technology

This is really cool, and in my view a game changer on the level of the internet.  It intersects, rapid and cheap prototyping, innovation at the local level, domestic production, mass customization, and just in time delivery.

It is called the factory in the home:  I believe this is the first of many automated, turnkey and cheap factories/concepts that will spring up in our country.  The company is called Other Machine Company and they developed the factory in the garage. It is called The Other Mill.

Other Machine Company



They created an integrated fabricator with incredible tolerances. I'll let them sell themselves, but between robotic automation, Additive Manufacturing, Maker Marts, and the factory in the box, innovation will flourish.

From a stock trading perspective these events strengthens my view on a Strong dollar, and a weak and failing China.

Food for Thought

We are going into the second weakest period of the year.  There is some short term and long term precedent here for a nice sell off.

Sectors to Buy or Sell in May

May is a transition month for the markets.  Early is benign, and later in the month stocks struggle, and June is worse.  I would be looking to trim positions here, especially after the gift we received since February.

Also for the gold and silver bugs; May is neutral but June is down.

I created a video walking through all of the sectors.  Enjoy.

https://www.youtube.com/watch?v=SW6OkJfJ2RI&ab_channel=TradeGenius