There is a lot of hype about commodities. Investors like commodities because they think/hope they will repeat the performance of 2003-2007. They forget that commodities rise when the economy is strong and the business cycle is on an upswing.
Commodities have declined and are staying at low levels since the recession started and the business cycle is on a downswing (click on chart to enlarge).
One more thing...beware of commodities that do not follow the general pattern.
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/. You can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs. I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes. George Dagnino, PhD
Editor, since 1977
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