The price of Wheat is going parabolic and most of you are wondering, does this spell a recession?
Historically, almost every time wheat prices spiked; a recession soon followed.
In the early 1970's when wheat prices peaked, the markets pulled back 41% in about a year.
Then, in the early 1980's, we saw the market pull back 23% in about 600 days.
Interestingly enough, in 1996 when wheat prices soared, there was no recession.
Lastly, in 2008, we see the market pull back 44% in about a year.
For the record, a recession usually follows a wheat price shock but not every time like the one we saw in 1996.
Now the question is will this time be different or WORSE because we a shock in the oil markets, wheat markets, and we have an ongoing war between Russia and Ukraine.
Let me know in the comments below what you think. And if you liked this post, make sure you subscribe for more.
Thank you!
Historically, almost every time wheat prices spiked; a recession soon followed.
In the early 1970's when wheat prices peaked, the markets pulled back 41% in about a year.
Then, in the early 1980's, we saw the market pull back 23% in about 600 days.
Interestingly enough, in 1996 when wheat prices soared, there was no recession.
Lastly, in 2008, we see the market pull back 44% in about a year.
For the record, a recession usually follows a wheat price shock but not every time like the one we saw in 1996.
Now the question is will this time be different or WORSE because we a shock in the oil markets, wheat markets, and we have an ongoing war between Russia and Ukraine.
Let me know in the comments below what you think. And if you liked this post, make sure you subscribe for more.
Thank you!