Discussion in 'Shares' started by Tropo, 1st Feb, 2009.
Commodity road to 2001??
Look at gold prices (or at least gold company prices seeing as FDR banned owning bullion) during the Great Depression... despite the deflation gold thrived, and in times of inflation it appreciated even more. I think the same is happening here. There is a flight to safety in both the USD and gold.
I'll be the first to admit that I'm no expert on bonds (or anything for that matter) but I have been reading around the place that there might be a fair few people getting out of US Treasuries due to the limited upside potential from here on out and with many believing that the bull run on treasuries might be over, coupled with much more attractive yields on good quality corporate bonds.
That said I tend to disagree on this article's assessment on the future of commodities. Whilst I think commodities probably still have a bit of room to fall further, I still think that once the world is through this credit crunch that there will be a lot of demand quickly restored to commodities, and there may very well be significant delays in bringing production back up to speed dependent on the length of the recession and the degree to which many corporations are forced to scale back operations and delay projects.
"That said I tend to disagree on this article's assessment on the future of commodities."
You do have a right to agree or disagree.
What market thinks is important.
What you or anybody else is thinking (or trying to predict ) is totally irrelevant.
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