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For Commodities, It's 2008 All Over Again
18 of the 22 components in the Bloomberg Commodity Index have dropped at least 20% from recent closing highs, meeting the common definition of a bear market.
As Bloomberg details, that’s the same number as at the end of October 2008, when deepening financial turmoil sent global markets into a swoon.
Dear Commodity Investors - Welcome back to 2008!!
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We don't need no stinking commodities
But, but but, it's different this time.
When faith(fiat) is questioned, tangible assets are gold.
Where's Larry Fink?
Bull market in commodities in the East.
They like gold and silver.
Gold sales are surging at the US Mint right now too.
Maybe worse. The strength of the USD is crushing commodities. Drop the Euro.USD pairing onto a gold chart.
The export of inflation from Asian and European Countries is causing an artificial rebalancing of the $USDX BASKET OF CURRENCIES.
Unless you employ a personal shopper, the costs of virtually EVERYTHING cotinues to rise.
The Fed. IS NOT reducing it's balance sheeet. The Fed has one chance at normalization.
The Fed. can't raise rates, but they can cut interest on excess reserves held OIS by banks.
That will force lending, (qualified) and normalize the equity markets.
Good point. But is it not possible that if the Fed cuts the interest rate it pays on commercial banks' excess reserves, that the latter will join the rest of investors in seeking yield at any price and further inflate the stock market ?
Problem is Yen, "normalization" - these days, would be considered damn near radical.
This cat and mouse Kabuki that Yellen and the girls are doing is akin to listening to a tied up soon to be dead guy diatribing his own last rites....
I'm stocking up on coffee and sugar!
Are we still addicted to oil mr. Bush?
The commodities index is a heterogenious jumble of raw materials that respond to different economic forces. Farm commodities depend on the weather, base metals depend on industrial activity, the auto market and housing. Precious metsls depend on government manipulation and energy depends on the policy vagaries of OPEC, Russia and the US. It is difficult to see how this index serves any useful purpose for economic analysis.
green arrowed
not to mention it doesn't even say when that previous"bull peak" was, bloomberg is for retards
Except for precious metals, they all depend on the willingness and ability of businesses and consumers to buy more. Everyone is broke and businesses see no growth opportunities
How come the price of pussy never seems to go down?
I mean, uh, cat food ....
Where is Bart Chilton when ya need him?
Here in Alaska the price of sockeye/ red salmon has gone from $1.25 per lb last year to .50 this year. With NO drop in RETAIL price at the supermarket from my research.
Fuckers
Here in NZ we are watching the world dairy prices as this is our major export. The price for milk powder, for example, has dropped from over US$5000 to US$1535 per metric ton in the last year. Let's hope the farmers put aside a financial buffer during the boom years - oh wait.
I've noticed the cataclismic drop in milk powder prices also. If you check the date of the latest drop-off, I believe you will find that it coincides with the imposition of the Russian counter-sanctions. I believe you Kiwis should tell your government to stop the bullmanure and get yourselves off the US-inspired sanctions against Russia.
Don't fret for the farmers, some "angel investor" should wing it there to buy them out, just before the prices miraculously rebound.
They can keep their jobs, just not their farms.
I didn't believe you, so I checked 4th Feb 2014 $5005 ---- Today $1590, Holy Crap Batman, so even adjusting for the exchange rate differential this is not going to end well. Good thing grass is plentiful in UnZUd
RENCas is the only bright light in the milk shed
Commodities are being manipulated to hide the inflation. Same with gold.
Almost there -- the dollar is being manipulated to hide inflation. At the expense of fucking over the rest of the world.
When it comes home to roost, oh man will there be a shitshow.
What peak did they use, 2007-8?
I am sure global warming will drive up the price of fuel as people need more air condiitoning each summer.
And less heat in the winter.
Well if it's any consulation, at least the commodities down draft will translate into cheaper finished goods, because the
corporations will pass all the savings on raw materials on to the consumer, rather than pocketing the differential to
boost sagginging margins.
Here is why gold prices are so low:
http://michaelekelley.com/2015/07/20/dear-fed-plz-raise-gold-price/
http://www.zerohedge.com/news/2015-07-09/are-big-banks-using-derivatives-suppress-bullion-prices/
Here are some more signs of a coming recession.
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record...
http://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/
http://michaelekelley.com/2015/02/24/would-you-pay-39-more-than-asked/
http://www.zerohedge.com/news/2015-07-27/when-will-we-ever-learn/
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
Good point Rmol but it is a world price and I see in the news that UK dairy farmers are protesting at supermarkets. Lol, we don't use the S word. Our reserve bank cited 'russian issues' and chinese overstocking as the cause of the price plunge, Our farmers are used to commodity surfing, with land that once was sheep grazing. going to wheat and then to irrigated dairy production. The next wave will probably be horticulture to cash in on Cali's demise if we can get access to US markets through tpp. Meantime there has been a surge in chinese purchase of dairy farms which requires and receives overseas investment commission approval.
All this bullshit since 2008 has been for the elites and not the little guy i.e. you and me. If it had been about the small invester the powers that be would have let the crash happen and we would be well off and better by now. These greedy bastards, however, decided, that since they cannot stop the crash they would postpone until they would get their maximum profits and leave the now horrific pain for the masses to endure. We the people will reap the whirlwind when if the morons at the top would have had the balls in '08 to man up none of this would be neccessary. Just my take on it.
If banksters really want inflation they need to stop supressing the metals markets and let them rise, this is the only action that will save and get all markets to rise parabolically for the final faze of the mania!!!!
If banksters really want inflation they need to stop supressing the metals markets and let them rise, this is the only action that will save and get all markets to rise parabolically for the final faze of the mania!!!!