11/3/10

Commodities and interest rates

1. Declining interest rates are followed by rising commodities.
2. Rising interest rates are followed by lower commodities.

How to use these relationships between commodities and short-term interest rates?
  • Start looking for investment opportunities in commodity or commodity driven stocks when you see short-term interest rates declining.
  • Plan to reduce your investment in commodities or commodity driven stocks when you see short-term interest rates rising.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked best market timer in the 12 and 6 months ending 8/20/10 by Timer Digest

To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.

Disclaimer.The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site.

2 comments:

Anonymous said...

What about stable short term interest rates?

www.peterdag.com said...

I decided to leave the statement as is. If I start giving more details then I get into situations that might not be true or create more confusion. Again, it is not that I do not want to answer. It is more the case that the relationship I stated would become less clear.

George