The anxiety over commodites pricing is overdone...
The commodities bull market is not over...it's just resting after a long quick run up from multiyear lows...
A retracment of some or nearly all of the gains is expected and healthy.
It's just the way markets operate...especially when an investment becomes a "no brainer" like gold and oil did in the early put of this year.
Further proof is that shorting gold stocks has now become a no-brainer in the opposite direction... At some point the shorts will have to cover and the market momentum will return...
Even as global demand is increasing and the dollar is weakening from out of control debt and deficits at home...and unwinnable wars abroad.
It always amazes me how so many people are ready to throw in the towel on long term investments that are solidly based on macro-economics...even while they hold out on pure story stocks and market spin.
THE DECLINE IN OIL AND GOLD IN THE COMING MONTHS WILL BE THE MOTHER OF ALL BUYING OPPORTUNITIES...
AND IT WILL GIVE THOSE WHO "MISSED" THE SPRING RUN UP ANOTHER CHANGE TO PLACE THEIR BETS...
THOSE BETTING AGAINST COMMODITES...ARE BETTING AGAINST REALITY AND THE RULES OF MACROECONOMICS...
I'D RATHER HAVE A LONG TERM BET BASED ON SOUND ECONOMIC THEORY...THAN TO PLAY THE TIPS ON TOUT TV WEEK IN AND WEEK OUT...
