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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (36653)2/11/2010 7:49:27 PM
From: Madharry  Read Replies (2) of 78751
 
I have heard a common viewpoint expressed that in periods of oversupply the price of the commodity drops to that of the lowest marginal cost producer. I studied economics but i have idea if that is true in the real world. My guess is that is not.
and the largest companies will manage their production accordingly, since there is not an infinite supply of copper unlike a manufacturing proccess. But I am certainly curious as to what others think. In any event I am trying to learn from prevous mistakes and not hold stocks as they drop 50% or more in price.
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