Has the Commodities Bubble Burst? No, No, No!
September 16, 2006 -
Everywhere in the media, you have pundits saying that the commodities Bull Run is over - including even chief global economists of major investment firms like Steven Roach of Morgan Stanley. They’re all wrong. This is a case of everyone panicking from sharp corrections that no doubt have caused millions of people world wide some mental anguish and hand wringing. But not me. I’ve dug deep enough down into the rabbit hole to know that gold will rise much much higher in the future. In fact if you go back and read my earlier blogs and ezines (for my ezine subscribers), you’ll see that when gold was at over $625 an ounce I said that gold was heading lower than $600 to test its June lows of $570 and possibly head lower. And I still think that we haven’t seen the end of the correction in gold. Yes, oil has slipped to below $60 a barrel but again, this doesn’t mean that oil is done either.
Add comment September 16th, 2006
People continually employ flawed and deceptive statistics when making their investment decisions. In the short term, the performance of the U.S. stock market has enormous influence on all other major stock markets. One of the most closely watched indexes to gauge U.S. economic conditions is the Consumer Price Index (CPI), which is viewed as a measure of core inflation in the U.S. economy. However, the CPI excludes food and energy prices because the government claims, these sectors have a history of being extremely volatile so they feel that their inclusion would skew real inflation rates. This is the dumbest, most deceptive piece of junk that I’ve ever heard. Skew them? No, their inclusion would just tell you what real inflation is.
