Invest Intelligence When It Realy Matters
Stathis on Commodities, Gold and Treasury Yields
July 2013 Intelligent Investor (Part 1) Opening Statement
Originally Published on July 7, 2013
The correction in the commodities bubble continues, as overall global demand continues to weaken. The impact of a weakening global economy on the commodities market is especially evident when one considers the current situation in China, which is now revealing some manifestations of an economic slowdown.
We should not forget that at the beginning of 2013, everyone was talking about the strength of China in addition to momentum in the U.S. economy. We specifically discussed that this interpretation was completely inaccurate, and in fact we insisted that both China and the U.S. economies were weakening.
As many subscribers will recall, we first discussed a correction in the commodities bubble in the February 2011 issue of the Intelligent Investor. Although we discussed that a correction was imminent and in large part irrespective of the forward strength of the global economy, we were biased towards a gradual weakening of the economy due to the depletion of global stimulus combined with misguided austerity in much of the advanced world. We have included excerpts of this forecast in this issue. [1]
You might recall that many so-called “experts” were claiming commodity prices were headed much higher (Peter Schiff, Jim Rogers, etc.). Hopefully by now you realize that every so-called “expert” in the media is nothing more than a yapping billboard that should be utilized as a contrarian indicator.
In our February 2011 Commodities analysis we laid out three levels of correction we felt would ensue in the CRB Index, each level based upon how much the global economy would weaken. Since this warning was published, we have been reminding readers of these three levels in every issue of the commodities forecasting report.
...to continue reading, sign into your Member or Client account.
Take advantage of the special low rate for an annual membership, at only $300.
See here for Membership Benefits.
As an added bonus, you get our 300-page global economic analysis which is guaranteed to be the most detailed and comprehensive single report anywhere, and will remain valuable for years to come.
See here for more details.
