In this segment, Financial News Anchor Jessica Borg interviews Senior Analyst Sean Brodrick about the five-year "supercycle" that has just started.
You can watch the video segment or continue reading for the full transcript.
Jessica Borg (narration): The devastation in Ukraine will be felt for years …
The fallout on citizens, the fallout on economies.
Senior analyst Sean Brodrick says it's all part of a vicious cycle.
JB: You're writing a lot about two critical cycles affecting every aspect of the financial markets right now — the cycle of inflation and the cycle of war. Explain that.
Sean Brodrick: The more research we do, the more we look at things, the more we see cycles in things.
The war cycle is a real thing, and it has its ups and downs and right now, it's in one of its up periods.
JB (narration): He says it'll likely hit a crescendo next year.
SB: Now, this doesn't mean World War III or the end of the world.
But it means that companies that are in the right space can do very, very well at a time like this.
Raytheon Technologies (RTX) is an example of one of them.
JB (narration): It's a company that makes weapons and missile defense systems.
This is a chart showing the stock since 2002.
SB: Raytheon is doing the triple performance over the long term, over the S&P 500 index.
It's really picking up because everybody needs its weapons now to protect against Russia.
Not only Ukraine, but all the NATO members are now saying, "Boy, what if the Russians roll across our borders? What are we going to do?"
JB (narration): Sean has recommended these types of defense stocks in Wealth Megatrends and Supercycle Investor.
He speaks in depth about his cycles research with Weiss Ratings founder, Dr. Martin Weiss, in a special three-part series that I hosted.
They highlight the convergence of cycles that's beginning right now — and discuss how to protect and build wealth during different phases.
Martin Weiss: I call them the "four horsemen" of the economic apocalypse that we see ahead.
SB: For example, the third horseman, or phase 3, is when major foreign governments are thrown into turmoil — not just because of out-of-control inflation, but because of trade wars, currency wars and the spreading fear of shooting wars.
JB (narration): He says there are numerous ways for investors to pad their portfolio over the next two years.
SB: For those who understand what has happened in the past, how these forces are going to be unleashed and when they're going to strike, it's not that difficult to prepare.
One of the most dynamic aspects of this crisis is there are so many opportunities to profit.
JB (narration): Right now, commodities — which are cyclical — are flying high, especially with sanctions against Russia affecting the supply chain.
SB: I do expect inflation to continue, especially for things that are commodities that Russia exports.
It exports nearly half of the world's palladium.
It exports about 15% of the world's platinum.
It exports enough oil to make a difference.
Nickel is something that's under pressure, anyway, and then when you have Russian supply apparently taken off the market — that just set that on fire.
So, the nickel market will come down … but, it isn't over. There's a lot more to go.
People should just wait for that pullback and get on board because this is a thing that should trend higher, anyway.
JB (narration): Aside from metals, agricultural goods like wheat and corn are good bets.
The Teucrium Corn Fund (CORN) gives investors exposure to the price of corn futures.
It's rallied 18.2% just since December.
SB: CORN has had a great run. It is pulling back in sideways motion — what we call a bull flag.
And the saying on Wall Street is flags fly at half-mast.
So, we're not saying that we're sure that the run is only halfway done, but the likelihood is that Teucrium Corn Fund has much further to go.
And this will play out over time.
JB (narration): Also keep an eye on the price of fertilizer, which is soaring.
Russia is a huge producer of the raw materials used to fertilize crops.
With trade restrictions, prices will jump even higher, and several companies are bound to profit like Nutrien Ltd. (NTR), CF Industries Holdings (CF) and The Mosaic Company (MOS).
SB: For now, the market is scared that it won't have that much of a fertilizer supply, so people should definitely look at fertilizer companies.
JB (narration): With aluminum skyrocketing, the company Alcoa (AA) is benefitting.
Investors with Wealth Megatrends have seen gains of more than 80% since Sean recommended it.
SB: Why has this been doing well? Again, we saw the world coming out of a pandemic, which means everyone wants to buy more stuff. Aluminum goes into stuff, so it was doing well anyway. But, what's one of the big exports of Russia? Aluminum.
JB (narration): And let's go back to oil.
JB: There's a lot of debate right now on the path that oil prices may be on. What's your take?
SB: Has oil peaked? Did we hit the peak at $130, or is it going to go higher?
I've been having an argument with friends online. They think we saw the peak in oil. I don't think we have.
Either I'm right, or else they're right.
JB: Sean, you're always right.
SB: Don't I wish!
JB (narration): He thinks the oil space is where to be, anyway.
SB: At current prices, never mind higher prices, at current prices, there are so many oil producers making so much money.
You want at least some of them in your portfolio because they're going to do things like pay dividends, raise dividends, pay special dividends and do share buybacks.
I think oil has a lot of upside potential and I think that's going to play out for the rest of this year.
JB (narration): So, consider any pullbacks a great buying opportunity.
SB: I think the bull market continues, so you can have a great ride in many good stocks from here on.
JB (narration): As well as with exchange-traded funds (ETFs).
SB: Here's one I like — the Invesco DB Commodity Index Tracking Fund (DBC).
It's very liquid, with 5.7 million shares traded per day.
It holds a basket of commodities.
JB (narration): And you can hold a basket of gains at the end of this cycle.
JB: Senior analyst and cycles expert Sean Brodrick, thank you so much for your insights today. Always great speaking with you.
SB: Always great talking with you. Thanks so much for having me on.
Best wishes,
The Weiss Ratings Team
P.S. If you did miss the emergency briefings from Dr. Martin Weiss and Sean Brodrick about the convergence of cycles, there's still a short amount of time to watch their warning. Click here for more information.