Posted on 05/29/2013 7:41:02 AM PDT by blam
One Critical Commodity Is Having A Worse Year Than Gold
Sam Ro
May 29, 2013, 7:59 AM
Here's a chart that Deutsche Bank includes in its periodic "Equity View" report.
It's the year-to-date and month-to-date returns of the world's most important asset classes.
There aren't too many surprises here. Japan's Nikkei is leading stocks and the yen is lagging the currencies. High yield bonds are leading the credit markets as investors reach for yield.
One area that may surprise some is commodities. Gold has experienced a very widely reported sell-off. But iron ore is actually having a worse year.
Iron ore is sensitive to activity in China, where tons of the metal is used in the country's massive ongoing infrastructure projects.
Earlier the month, we learned that manufacturing activity stalled. Perhaps, this is contributing to the sell-off.
(Excerpt) Read more at businessinsider.com ...
Dr Copper
Can’t see how there can be much of an economic recovery when commodity prices continue to fall and I’m not talking about gold, but such staples as iron and copper basic building blocks of industrial expansion.
Looks like they are saying the divergence in housing starts and lumber futures may be a warning sign for the housing markets.
DJIA Down 166 as I post
Nonsense!
Lumber futures limit down = BULLISH! Cheaper lumber means more houses, which means more loans and more “money velocity”, more earnings for the builders, higher stock prices!
Lumber futures limit up = BULLISH! If lumber is in short supply, that means that the housing boom is back!
I really don’t know why CNBC never responds to my application to be an on-air personality.
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