<I am scratching my head at that as well.>
What's so hard to understand? You have a guy like Bill Gross commenting right there on CNBC, just minutes after the announcement, that he recommended selling bonds, as the Fed is irrational. There's more than a bit of inflation panic on, and the MoP is failing to defend against it.
Some comments on the Baltic, China slowdown, and copper:
Both copper and Baltic
quote.bloomberg.com
suggest that China has gone from hyper-frenzied in Feb-March to now just frenzied. On copper, just the facts: in the month of March, combined Comex and LME stocks fell 120 MT from 522 to 402. For the month of April, they fell 78 MT from 402 to 324. However, at some point in April, it appears Grasberg reentered the picture with about 15 MT of additional supply. It's a little unclear exactly when and how much, but they are there with it now. So it's all relative, yesterday May 4, combined stocks were about 319 MT. It still looks like a Train Wreck, walks like a Train Wreck, and sounds like a Train Wreck to me. |
