Sunday, October 21, 2007
The real bull market (Commodities)
I suppose many investors assume that the rise in commodity prices is a monetary phenomenon. However looking at gold and oil in Euros, Pounds and Yen we see they are both in strong bull markets even when measured in currencies that are appreciating strongly. The US is exacerbating the problem by printing too many dollars but the underlying cause is a supply/demand imbalance.