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Strategies & Market Trends : Commodities - The Coming Bull Market
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To: maceng2 who wrote (1283)5/13/2002 11:41:26 AM
From: Robert Douglas  Read Replies (2) of 1643
 
The "Zeal article" that was linked is incomplete. It documents that many commodities are cheap, but by itself this is meaningless.

You have to ask the question, why. Many commodities have achieved increases in productivity that make them cheaper to produce. Their prices aren't going to go up because demand is nowhere near supply. As long as production costs are covered, the supply won't be retired.

My reason for bullishness on commodities is based upon the demand side, (which we are still waiting for) not the supply side nor the low price. This is what the article is missing. Remember, just because something has declined in price, doesn't mean it's a buy.
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