In the 2000s, commodities were the hot investment theme. Massive industrialization had begun in places like China and India. These markets needed tons of raw materials to build up their cities and infrastructure. Commodity prices soared.

Editor's note: Today in the Chaikin PowerFeed, we're sharing an essay from our friend Brett Eversole at our corporate affiliate Stansberry Research... This essay published in the March 4 edition of Stansberry's free DailyWealth e-letter. And in it, Brett shares a note of caution about the commodities market. Here at Chaikin Analytics, the Power Gauge is also flashing caution for this corner of the market. Today, the materials sector earns a "neutral" rating in our system. In fact, it's the lowest-ranked sector in the Power Gauge right now. So we recommend paying attention to Brett's message... Commodities Are Rallying... But Don't Expect a Major Boom By Brett Eversole, editor, Stansberry Research In the 2000s, commodities were the hot investment theme. Massive industrialization had begun in places like China and India. These markets needed tons of raw materials to build up their cities and infrastructure. Commodity prices soared. But the global financial crisis put that boom to bed. And the rally has never fully gotten back on its feet... A major commodities benchmark is still more than 50% below its 2008 high. Excitement has left the market. No one cares. Lately, though, commodity prices have been rising. This benchmark index recently broke out to a new 52-week high... But that doesn't mean prices will keep soaring from here. Instead, a half-century of data tells us not to expect much – even after this breakout. Let me explain... Recommended Links: A Massive Wave of Bankruptcies Is Coming An unusual market crash may be coming. See, there's actually a market far BIGGER and more important than the Nasdaq or S&P 500 that most folks likely know nothing about. The world's best investors watch it like hawks – knowing the next crash will create a slew of 100%-plus opportunities. Now, a top expert says the opportunity he has waited a decade for is arriving. You must prepare now. Don't Panic – Here's What to Do Next The next three months could be very challenging and critically important for anyone with money in the markets. You need a big-picture plan... and you need to take specific actions starting TODAY. Don't get stuck in the "denial" trap so many fall into. Fifty-year Wall Street veteran Marc Chaikin recently published his full big-picture plan, which lays out – based on more than 100 years of data – exactly what you can expect in the markets this year (and in 2026, too). Click here for Marc's critical new update. In the markets, when prices are rising, that trend tends to continue. You can spend years digging into why that happens, but it doesn't really matter. If you simply study the data, you'll see that higher prices usually lead to higher prices. It's a phenomenon across asset classes all over the world. The trend matters – plain and simple. And that's why breakouts are important. When an asset breaks out, it means two things: 1) the trend is up, and 2) prices are moving to highs not seen in recent history. These facts tell us the uptrend will likely continue. Given all this, the latest move in commodities might seem promising at first. Last month, the benchmark Bloomberg Commodity Index broke out to a new 52-week high. Take a look... The past few years have been a slog for commodities. We saw a major rally through 2020 and 2021, in the thick of the pandemic. But prices peaked in mid-2022. And they've mostly fallen since then. That makes the recent breakout even more interesting. This is the first new 52-week high for commodities since just before the 2022 peak. Unfortunately, this kind of breakout doesn't make commodities a surefire bet. Here's what we've seen after similar setups over the past 50 years... Commodities can experience major booms and busts. But over the long term, they've essentially gone nowhere. They've risen just 0.8% a year since 1975. Buying after a new 52-week high improves that result – but not by much. Similar extremes led to 1.2% gains in three months, 1.5% gains in six months, and 3.3% gains in a year. These unimpressive gains happen because we have lots of winning and losing cases in the data. Overall, commodities were only higher a year later 63% of the time... And they suffered double-digit losses nearly a fifth of the time. This happens because commodities can't rise forever, unlike stocks. They're physical goods tied to supply and demand. High prices reduce demand... which leads to lower prices. So while the trend is still important, it's less important in this kind of market. This is the first commodities breakout we've seen in years. And that means prices will likely keep rising. But we shouldn't expect an all-out boom... or even a surge above 2022 levels anytime soon. While this breakout brings a tinge of excitement, it's still too early to assume it's the start of a multiyear commodities bull market. Good investing, Brett Eversole   Editor's note: At DailyWealth, Brett and his colleagues at Stansberry share insights like this each weekday morning that the markets are open. And this e-letter is 100% free to receive. If you aren't already a DailyWealth reader, learn how to sign up for it by clicking here. Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 -2.05% 5 19 6 S&P 500 -2.66% 41 343 114 Nasdaq -3.88% 8 72 20 Small Caps -2.52% 163 1229 509 Bonds +1.04% Utilities +1.1% 6 22 3 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks have become Bearish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Energy +0.3% Staples -1.01% Materials -1.14% Health Care -1.28% Utilities -1.5% Industrials -1.67% Communication -3.16% Real Estate -3.35% Information Technology -4.31% Discretionary -6.44% Financial -7.19% *  *  *  * Industry Focus Health Care Services 3 33 22 Over the past 6 months, the Health Care Services subsector (XHS) has underperformed the S&P 500 by -3.61%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #10 of 21 subsectors and has moved up 5 slots over the past week. Indicative Stocks ACHC Acadia Healthcare Co AMED Amedisys, Inc. USPH U.S. Physical Therap *  *  *  * Top Movers Gainers REGN +5.27% AES +4.71% NEE +4.57% SNDK +3.92% DVA +3.32% Losers TSLA -15.43% MCHP -10.57% PLTR -10.05% DXCM -9.15% NOW -7.85% *  *  *  * Earnings Report Earnings Surprises ORCL Oracle Corporation Q3 $1.47 Missed by $-0.02 NX Quanex Building Products Corporation Q1 $0.19 Beat by $0.18 AVO Mission Produce, Inc. Q4 $0.28 Beat by $0.20 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at reunisoft.cryptonews@blogger.com. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice. © 2025 Chaikin Analytics, LLC. All rights reserved. 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