10/11/07

Commodities: strong

Commodities are strong, from gold to wheat. Why?

There are several reason. The first one is that the global and US economies are stronger than generally believed.

They are denominated in dollars, and reflect the devaluation of the greenback.

Their action is good news for commodity sensitive stocks.

But their trend is bad news for the outlook of inflation.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977

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