Commodities are very sensitive to economic conditions. They rise when business improves. They decline when business deteriorates.
Commodities have been strong since March (click on the chart to enlarge). They lost their spark, however. What does it mean? Is the economy stalling? If so, "cyclical" sectors should not perform well. This is something to watch closely.
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where 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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