It is the same old story. When everybody worries about something it is always too late.
As I mentioned in space over and over again, commodity prices rise because of cheap money and a strong economy.
Commodity prices decline following weak economic conditions.
The US economy has shown little or no growth in the past 6 months. The outcome is that commodities are beginning to show signs of fatigue as shown in the above graph (click to enlarge). Including grains and oilseeed.
The slow economy will place a cap on commodities for several months. This is good news for the consumer because inflation will abate thus increasing our purchasing power.
More, much more on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
No comments:
Post a Comment