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Otavio (Tavi) Costa, portfolio manager at Crescat Capital, highlights significant upward moves across several commodities.
He points to sharp gains in precious metals, rising mining stocks, and agricultural commodities reaching new highs. Oil has reached $100, while natural gas prices appear to be bottoming. Costa suggests that these moves are not just a coincidence.
Costa previously highlighted stagflation risks in the latest ISM report, citing prices at three-year highs and employment at two-year lows in a recent analysis. He has also criticized the St. Louis Fed for using an alternate inflation metric to support lower rates, even as inflation rises, according to a separate statement. Both instances reflect Costa’s focus on inflationary pressures in the current economic environment.