Posts filed under “Commodities”

Commodities Return to the 1990s

    The chart above is the Bloomberg Commodity Index. It consists of baskets of common commodities, including energy, metals, foodstuffs, softs and precious metals.

After a fairly flat period in the 1990s, the index leapt upward beginning in the early 2000s. The context explains the jump: High inflation, weak dollar and low interest rates. From 2001 to 2007, the dollar lost 41 percent of its value, and all commodities priced in dollars skyrocketed. At the same time, China began a huge expansion of its infrastructure, transportation, housing and manufacturing sectors. The BCOM index moved from around 90 to almost 240.

You know the rest of the story: Inflation is nowhere to be found, and the Federal Open Market Committee is concerned about deflation. The dollar is at multiyear highs against just about any other currency. Commodity prices have suffered as a result.

    Continues here: Why Commodities Are Back in the 1990s

Category: Commodities, Currency, Economy, Markets

The Bacon Cheeseburger Index

Nicholas Colas, Chief Market Strategist of Convergex, writes a daily preview/analysis for institutional clients.  This is a sample of his work; contact info below.   ~~~~ The history of the hamburger is lost to the fog of human memory, but culinary historians have pieced together a likely migration path starting with the Mongol Empire and…Read More

Category: Commodities, Federal Reserve, Inflation, Think Tank

Look out below, Commodity Stockpile Edition

We never know why futures bounce around from moment to moment, but the excuse du jour is commodity stockpiles . . .     click for updated futures   

Category: Commodities, Markets

China Consumes Mind-Boggling Amounts of Raw Materials

Source: Visual Capitalist

Category: Commodities, Economy

Is the Bull Dead?

Is the bull market, which started after the lows of early 2009, coming to an end? Let’s have a look at some data, as well as the arguments pro and con, to see if we can find any insight. In particular, I want to look at the latest economic, corporate and market issues to see…Read More

Category: Asset Allocation, Commodities, Cycles, Economy, Markets

Commodity prices now falling in all currencies…

…and across all categories Source: Gerard Minack, Downunder Daily

Category: Commodities, Currency

Where the Commodities Meltdown Will Hurt the Most

Source: Bloomberg

Category: Commodities, Digital Media, Economy

Category: Commodities, Think Tank

Falling Oil Prices & Your Portfolio

    My Sunday Washington Post Business Section column is out, where we look at the impact of energy on the Economy. The print version had the full headline “The oil supply, energy demand and a rip-roaring U.S. dollar: What it means for your portfolio” while online had the shorter What do falling oil prices mean for…Read More

Category: Apprenticed Investor, Commodities, Energy

Cornucopia: Stockpiles of Foodstuffs

Nice chart from WSJ about the stockpiles of foodstuffs around the world:     Source: WSJ

Category: Commodities, Markets