## Viewing Investment Logic Through Commodity Price Increases

To identify potential stocks, a straightforward approach is to follow the price increase cycle. The principle is simple: behind commodity price rises, there are generally two driving forces—either supply and demand imbalance or rising production costs. In any case, the profitability of companies along the entire industry chain tends to improve, which often signals a market bullish trend.

Looking at this year's examples: storage chips, lithium carbonate, fluorochemical, non-ferrous metals (gold, silver, copper, aluminum), plus recent chemical stocks, all these categories have experienced significant price increases. Historical data shows that the first quarter is usually the most likely time window for price hikes throughout the year.

## Current Price Increase Industry Map

Compared with recent market data, industries with more obvious price increases are mainly concentrated in:

- **Precious Metals and Energy**: Silver and gold prices hit new highs
- **Chemical Industry Chain**: The prosperity of petrochemical and phosphate chemical sectors
- **Agricultural Breeding**: Prices of pigs, chickens, and other livestock are rising

The common feature of these industries is that the price increase cycle often drives profit recovery across the entire industry chain. In the short term, it’s a price signal; in the long term, it’s an industry opportunity.

## Thoughts in the Current Environment

When commodities generally enter a price increase channel, where are the investment opportunities? The answer lies in the upstream and midstream companies of these industries—they benefit from rising prices and are at the forefront of profit realization. Recognizing this pattern is equivalent to mastering a relatively stable stock selection strategy.