The calendar page has just turned to November, meaning the Holiday Season has begun. At least in the United States. I know my friends in Canada had their Thanksgiving Day during October, a holiday that focuses more on an actual day of giving thanks than the day of gluttony and sloth it has become south of the Canda/US border. But I digress. Since time will now accelerate into the New Year, what market sector stands out to me as we close out 2025?
Keep in mind I’ve spent my life studying the commodity complex. Global stock markets remain red hot, meaning you can’t go to a financial news page without reading the latest gibberish regarding Nvidia, Amazon (this time of year in particular), Meta, and Palantir. Given this partial list of hot stocks, it’s not a huge surprise the Nasdaq ...
The calendar page has just turned to November, meaning the Holiday Season has begun. At least in the United States. I know my friends in Canada had their Thanksgiving Day during October, a holiday that focuses more on an actual day of giving thanks than the day of gluttony and sloth it has become south of the Canda/US border. But I digress. Since time will now accelerate into the New Year, what market sector stands out to me as we close out 2025?
Keep in mind I’ve spent my life studying the commodity complex. Global stock markets remain red hot, meaning you can’t go to a financial news page without reading the latest gibberish regarding Nvidia, Amazon (this time of year in particular), Meta, and Palantir. Given this partial list of hot stocks, it’s not a huge surprise the Nasdaq ($NASX) continues to rocket higher while the S&P 500 and Dow Jones Industrial Average are content to chug along showing seasonal strength as well. The idea is money is being created by the gains in stocks and stock indexes, with investors looking for fundamentally sound markets and/or market sectors in which to diversify.
Since the global economic and political situation isn’t going to regain its sanity any time soon, investors and central banks alike will continue to buy Gold (GCY00) as a safe haven hedge against the certain uncertainty. We also know inflation isn’t going away any time soon, though the next couple months could be a test of consumer sentiment in the US given higher prices for everything. Those looking to diversify their gold positions have also become interested in Silver over the last number of months, again due to its industrial quality in “green” technologies (solar panels, EVs, AI, etc.), except in the US where “green” is a four-letter word. (Feel free to judge the intelligence of that.)
Energies look to be a lot of markets going nowhere. Sure, forward curves are in backwardation (Brent crude, WTI crude, distillates), but as the great philosopher Inigo Montoya said, “You keep using that word. I do not think it means what you think it means.” This market situation used to indicate bullish supply and demand (in storable commodities), but it’s just one of the many things that don’t seem to be true these days. At least not in global energy markets. Let me put it this way: When the clearest read, from a technical point of view, is natural gas (the famed Widow Maker), I’ll look elsewhere for opportunities.