I’ve studied many bubbles over the years, and concentrated on predicting their demises. Commodities show every sign of being in one. (Shilling in Bloomberg)
As I mentioned in previous posts, commodities rise and decline for a solid economic reason.
They rise when the economy is strong and decline when the economy is weak.
They are a very sensitive gauge of business activity and no one can manipulate their price for too long. Eventually the markets always win.
If you believe, as I do, that you buy bonds for capital appreciation, are these trends favorable for bonds?
More on The Peter Dag Portfolio.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year 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.
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