Sow Your Own Profits
With a worldwide economic slowdown and concerns of a hard landing in China, high-flying commodities have come back down to Earth. The apparent realization that trends don't last forever or occur uninterrupted has these investment vehicles taking a backseat lately. An obvious commodity that will be affected is copper, a purely industrial metal driven by construction demand. Oil is in its own world, driven by a simple formula of greater consumption despite economic weakness and occasional but persistent Middle East tensions. What about the effect on agricultural commodities? They have been under pressure, too.
From a long-term perspective, the agriculture commodities are simply in a consolidation or normal corrective pullback. Like stocks, expectations get priced in and sometimes those expectations lead to running prices too quickly, requiring some adjustment. The worldwide economic slowdown is one obvious reason to expect less demand for just about everything, including agricultural commodities. The underlying long-term trend, however, remains intact and is likely to continue....530 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
