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Commodity Conundrum - Great Recession coming?!?

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July 02, 2015 – Comments (1) | RELATED TICKERS: FCX , ACIIQ , AA

It is kindofa given that commodities do well during economic recoveries.  That's why what has happened in the previous few years has left me dumbfounded.  

 

Aluminum:  At 5 year lows

Copper:  At 5 year lows

Nickel:  At 5 year lows

Coal:  At 5 year lows

Silver: At 5 year lows 

Gold:  At 5 year lows 

Iron Ore:  Off but very near 5 year lows.

I could go on, but you get the point.  And, in my lifetime, I have never seen such uniformity in commodity price movement.  ALL of these commodities are at or near 5 year lows.  Some are near 20+ year lows.  It is just staggering.  And it leads me to one and only one conclusion - either commodities are set to SOAR because the economy really is booming and nobody sees it . . . or we are about to enter a recession WORSE than the 2008 recession.

 I like to be optimistic and hope that all of the commodities traders are getting it wrong - overvaluing the Greek Tragedy.  That's the way I invest.  If this pricing continues, MANY companies will go belly up and the ones that survive will be able to charge a FORTUNE for their commodities at some future date.  So pick well, my friends (or don't pick at all - we might be in for a GREATER DEPRESSION!!)  :-)

1 Comments – Post Your Own

#1) On August 14, 2015 at 3:42 PM, ozzie (99.93) wrote:

Since this posting, HERO (Hercules Oil & Gas) announced bankruptcy and ACI (Arch Coal, 2nd largest US Coal Producer) is on suicide watch.

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