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Is the commodity super-cycle now over?

Posted on 11 May 2013 with 2 comments from readers

Analysts at Citi are saying that the commodity super-cycle is now over and that shorting commodity currencies is the best way to play this move. ArabianMoney is not so sure. Demand fundamentals may be cancelled out by money printing and support the super-cycle quite a while longer.

On yesterday’s ‘Insight & Action,’ Adam Johnson looks at the commodity sell-off on Bloomberg Television’s ‘Street Smart’…

Posted on 11 May 2013 Categories: Banking & Finance, Bond Markets, Global Economics, Gold & Silver, Hedge Funds, Investment Gurus, Oil & Gas, Sovereign Wealth Funds, US Dollar, US Stocks

2 Comments posted by readers:

Comment by Andy - 11 May 2013

Looks like it is the end of the Gold rush for the time being.

If the FED is going to be slowly withdrawing its stimulus package from the market which is quite possible now that the DOW is at 15,000+ it would see quite possible that the commodity run may be over. Commodities decline first and then stocks after. Once stocks decline and crash people start looking for safe havens and then may jump back into Gold again lol.. So Gold will tank before shares tank. My $.02..

Economy is quite bad these days here in Asia and as we can see the YEN has breached the 100 mark. Next stop 110 and maybe even 120. Should be easy money shorting the YEN on all gains it makes. Every time it gains it is good to short after. Chinese YUAN is now doing exactly what the YEN did which is to appreciate despite market fundamentals. YEN went from 140 to under 80 which was crazy. The Chinese Yuan went from around 8.75 to 6.14. I reckon 5.80-6.0 will be bottom before it holds and then follows then YEN and tanks as well.

For the time being Commodity days are over but their time will come again.

Comment by Jon - 13 May 2013

I might be able to believe what you say if the government didn’t manipulate everything in the markets. I have to laugh since there are no free markets. Crony capitalism has been reigning for some time. With the biggest market boom from around 1860 to 1913-Just before the Federal reserve came into being, making debt slaves of us all.

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