Fisher Capital Management News: Commodity Markets 2010
The performance of the commodity markets remains very impressive.
Speculative activity is a major factor, and supply shortages, often the
result of adverse weather conditions, are also providing...
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Fisher Capital Management News: Commodity Markets 2010
The performance of the commodity markets remains very impressive.
Speculative activity is a major factor, and supply shortages, often the
result of adverse weather conditions, are also providing considerable
support; but there is clearly a view amongst both traders and investors
that the general level of prices is too low, and that they will move
higher.
Over the longer-term that view is likely to prove to be justified.
Commodity markets have been extremely volatile over the past month,
rising strongly in the early part of the period, but falling back sharply
towards month-end concerns about the effects of the austerity measures
being introduced in Europe, and indications of a continuing slowdown
in China, have combined to increase fears but for most of the past
month traders and investors apparently decided that the gloom was
overdone; and commodity prices also benefited from some “safe haven”
buying by investment funds.
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