............."Sell Commodities" Forbes Article
"Sell Commodities" Forbes article, see http://www.forbes.com/forbes/2008/0310/110.html.
Here's some of the article:
"What to do? Sell or short commodities, perhaps via exchange-traded funds, stocks in companies that produce them or futures. Commodity prices, still high, are poised to fall hard as the worldwide recession takes hold.
Chinese demand, terrorism and talk of peak oil drove crude prices. Agricultural prices were hyped by biofuel's popularity, droughts and the prospect of a shift in demand in poorer countries from grain to meat. So institutional investors rushed into commodities, believing they are a relatively stable asset class like stocks and bonds. Individuals bought commodity-backed ETFs. That enthusiasm will soon be history."
By the way, there are now Exchange Traded Notes (ETNs) where one can short gold, double short gold (oh yah), or trade gold double long. Carefully do your due diligence as to the suitability of these ETNs for trading/investing.
DB Gold Double Long (NYSEArca:DGP - News) offers two times the monthly return of the index. DB Gold Short (NYSEArca:DGZ - News) profits from declining gold prices. DB Gold Double Short (NYSEArca:DZZ - News) leverages the short position. http://www.dbfunds.db.com/notes/
....... http://www.JoeFRocks.com/ .
Here's some of the article:
"What to do? Sell or short commodities, perhaps via exchange-traded funds, stocks in companies that produce them or futures. Commodity prices, still high, are poised to fall hard as the worldwide recession takes hold.
Chinese demand, terrorism and talk of peak oil drove crude prices. Agricultural prices were hyped by biofuel's popularity, droughts and the prospect of a shift in demand in poorer countries from grain to meat. So institutional investors rushed into commodities, believing they are a relatively stable asset class like stocks and bonds. Individuals bought commodity-backed ETFs. That enthusiasm will soon be history."
By the way, there are now Exchange Traded Notes (ETNs) where one can short gold, double short gold (oh yah), or trade gold double long. Carefully do your due diligence as to the suitability of these ETNs for trading/investing.
DB Gold Double Long (NYSEArca:DGP - News) offers two times the monthly return of the index. DB Gold Short (NYSEArca:DGZ - News) profits from declining gold prices. DB Gold Double Short (NYSEArca:DZZ - News) leverages the short position. http://www.dbfunds.db.com/notes/
....... http://www.JoeFRocks.com/ .
Labels: Gold
posted by Joe Ferrazzano at
7:18 PM
2 Comments:
The Forbes articles can be viewed as part of the main-stream economists views that a US recession will be negative for commodities prices.
I see this as a contrarian indicator that the commodities peak is still far-off. When have the major news media ever gotten market tops or bottoms right?
And we should remember that commodities vastly outperformed the stock market during the 1973-74 bear market.
By
Anonymous, at 2:38 AM
Hi,
Forbes columnists tend to have a good grasp of what's going on. They tend to be very good professionals.
Gold stocks and gold are (very likely) in the process of putting in a Wave 1 Cyclical Bull Market cycle high. The deflationary worldwide economic downturn is or soon will seriously dampen demand for commodities. HUI/XAU/gold will probably soon experience an 18 monthish Wave 2 Cyclical Bear Market, but, the Secular Bull Market probably has about 10 years or more to run. There was an HUI (might not have been created yet)/XAU/gold 18-20 month Cyclical Bear Market in the 1975/1976 timeframe. Good luck.
By
Joe Ferrazzano, at 6:30 AM
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