Posts filed under “Commodities”
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
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
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
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