My Short Commodity Thesis 2020 to 2040

Here is my short thesis, which I’m currently executing on. 

Part 1 : Monetary Tabula Rasa 

Our entire economic system relies on the fact that asset prices have to rise. Pension, Insurances, Rates, everything is built on the premise that prices have to go up. 

 

To protect the system, Central bankers, financial players & governments are ( knowingly (or unknowingly)) colluding to do whatever it takes to keep all the assets price up. 

 

We are trapped in an ouroboros-type scenario where the more asset prices rise, the more the system relies on the asset price to keep rising, the more asset prices rise, etc…

 

This scenario’s outcome is a growing division between the people assets-rich that keeps getting richer as prices increase, and the people assets-poor that gets no chance to build wealth.

 

This middle class’s implosion will lead to more and more populism and radical actions from central bankers, financial players & governments. 

 

Therefore, something needs to break to relieve the pressure build-up in the system. 

 

Currencies are going to break. 

 

Through currency devaluation, citizens are going to pay by getting poorer.

 

In that environment, In-demand commodities are going to be a perfect hedge against currency devaluation. 

Part 2 : Green Electricity 

The world is going to keep pushing for a cleaner planet.

But, going from a fossil-based society to an electricity-based society is going to be the most challenging task humanity has ever undertaken.

Humankind has never gone to a lesser energy-dense source.

if the world wants
green energy,
green logistic,
green metals,
green plastics,
green intercourse,
green XYZ,
a bunch of commodities will have to shoot up in price to motivate miners to get them out of the ground.

I’ve sorted them into two different categories:

Commodities that play well with electricity⚡
Uranium
Lithium
Copper
Silver
Nickel
Colbat
Vanadium

Commodities that make stuff lighter 🌬
Scandium
Aluminum

What do you think? Am I missing something?

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