Bullish on Commodities
Bullish on Commodities
Bullish on Commodities
Famous investor Jim Rodgers, co-founder with George Soros of the Quantum Fund, echoed our sentiments yesterday at the Reuters Investment Outlook 2009 conference. His point is clear, but bears repeating. Commodities are simply at fundamentally low prices and while demand may have fallen as a result of the credit crunch, supply has fallen dramatically as well. From decreased oil exploration, to smaller plantings, and shuttered mines, producers are witnessing one of those few times in history, especially in minerals, where the market price is below production costs. However, people still have to eat, drive their cars and industry still has to produce, so while some prices may still go lower, we don’t see the current situation as indicative of a long term bearish cycle. You can read his comments here.
Friday, December 12, 2008