The Tide Is Turning For Commodities As Fed Pivot Nears – What’s Next?

How to Trade is Now the Top Trending Search Term on Google

This comes as no surprise, considering one in two people have now turned to trading as a way to combat inflation – whilst also capitalizing on one of the greatest wealth transfer opportunities of our lifetime.

2022 will always be remembered as an extraordinary year of economic shocks from Inflation, The Cost of Living Crisis, Rate Hikes, The Global Energy Crisis – And of course the New Global Currency War that is currently unfolding.

As a result, there’s really nothing historical you can point to for what’s going on in markets today. Each and every one of these highly lucrative macro-events is fuelling an era of enormous wealth creation like we have never seen before – presenting savvy traders with back to back money-making opportunities, almost on a daily basis!

Fed Pivot Dominates the Headlines

And just when traders thought things couldn’t get any more exciting – talk of a Fed pivot is now started to dominate the headlines and emerge as the next big opportunity on the horizon.

In recent weeks, a long list of Wall Street banks and international organization from the United Nations, World Bank and IMF warned that an overly aggressive Fed tightening policy, combined with a surging U.S dollar – “risks breaking the financial markets and inflicting worse damage globally than the financial crisis in 2008 and the Covid-19 shock in 2020”.

According to economists at Goldman Sachs, the Federal Reserve is now only “one or two rate hikes away” from unleashing a global financial meltdown.

Those bets hardened this week after a conglomerate of Wall Street banks increased their bets in favor of the Fed slowing the pace of its aggressive rate hikes in December.

Fed Chairman Jerome Powell and his fellow central bankers are still expected to back a fourth-straight 75-basis-point rate hike at their upcoming meeting next week.

However, traders have already began pricing in a strong possibility that the Fed will only hike rates by half a percentage point in December – a move that would bring the policy rate to a 4.25%-4.5% range – and no more than a half a point further over the next two meetings.

Bets are also increasing on interest rate cuts in the first-half of 2023. This combination of events lays the ground work an explosive end of year Commodity rally, traders will not want to miss out on.

Commodity Price Forecast Video for October 28, 2022

Extraordinary times create extraordinary opportunities and right now, as traders we are amidst “one of the greatest eras of wealth creation the world has seen”. My advice to you is, do not waste this opportunity!

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