4/22/12

An important indicator

Commodities are a very sensitive economic indicator. They rise when the economy starts improving and decline when business activity begins slowing down. The peaked in early 2011 (click on the chart to enlarge it).

The long-term trend of commodities depends also on the level of short-term interest rates relative to inflation. It is quite reasonable to expect they also drive entire market sectors.

How? These are the type of issues I discuss in the video shown in a post below. I recommend you review it.

George Dagnino, PhD Editor,
The Peter Dag Portfolio.
Since 1977
2009 Market Timer of the Year by Timer Digest
Portfolio manager

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