How Low Can Commodities Go?
The problem is charts lie all the time. All it takes is one hot missile in the Middle East to change the whole ballgame. And longer-term, the global commodity supercycle is intact. Heck, the price of iron ore recently went up 97% year over year.
But I thought I'd share three charts with you to show you what I'm looking at. First, weekly oil ...
Now the CCI, a broad index of commodities ...
Bottom line: A pullback is a normal and necessary part of a bull market. And it could hand us the buying opportunity of the next 10 years. A year from now, I expect prices to be higher than they are now, and potentially much higher.
OTHER NEWS YOU CAN USE ...
Here's an interesting take on the energy crisis ...
Want to save the
That's the message ecologists are trying to get across this week. They say the apparently looming energy crisis could be averted if US residents cut their calorie intake.
The average American consumes about 3747 kilocalories (kcal) per day compared to the 2000 to 2500 kcal per day recommended by the US Food and Drug Administration.
The 3747 kcal per day figure does not include any junk food consumed.
Producing those daily calories uses the equivalent to 2000 litres of oil per person each year. That accounts for about 19% of US total energy use.
U.S. foreclosure filings more than doubled in the second quarter from a year earlier as falling home prices left borrowers owing more on mortgages than their properties were worth. One in every 171 households was foreclosed on, received a default notice or was warned of a pending auction. That was an increase of 121 percent from a year earlier and 14 percent from the first quarter, RealtyTrac Inc. said today in a statement.
National Australia Bank Ltd. (NAB) said it has made an additional provision of A$830 million ($802 million) to its portfolio of collateralised debt obligations (CDO) of asset-backed securities. NAB said it now has provisions for nearly 90 percent of its total CDO portfolio.National Australia Bank makes A$830 mln provision to CDO portfolio.
XX Sean’s note – 90% of its CDO portfolio – which is the bad mortgage debt sold by American banks – is worthless? If NAB is right, we have a way to go in the
Adjusted for inflation, median household income dropped by $1,175 between 2000 and 2007, said Elizabeth Warren, professor at
At the same time, the average family is spending $4,655 more on basic expenses, such as gas, housing, food and health insurance. Gas alone costs $2,195 more for a family making the same commute in May 2008 as it did eight years earlier.Durable-Goods Orders Rise
Orders for durable goods unexpectedly rose in June, while a barometer of capital spending by businesses increased, a sign of strength for the struggling manufacturing sector.
It would cost $9.4 billion a year for 20 years to eliminate all bridge deficiencies in the
Xx Sean’s note – click through on the link for an incredible map showing unsafe bridges around the country.ENERGY
The world's top oil producers are currently proving unable to generate more barrels on demanding world markets, despite surging prices — a shift that defies traditional market logic and looks set to continue.
Fresh data from the U.S. Department of Energy show the amount of petroleum products shipped by the world's top oil exporters fell 2.5 percent in 2007, despite a 57 percent increase in prices, a trend that appears to hold true this year as well.
There are several reasons behind the net-export decline.Small Car Sales Surge
Starting in December of this year, three truck plants will be retooled so that they can build cars instead. In addition six new models will be coming over from the European lineup and Mercury will live on. Like other automakers Ford will be consolidating production of large trucks into fewer plants..... The