Michael, <So, my guess is that this financial inflation ends with a bang, not a whimper, and folks who thought they were
rich owning Micron at $95 will rush to buy goods that they can barter or that will at least make them feel as
though they have something. That will shift demand and prices rapidly. Of course, even if I'm wrong,
overpriced stocks, on which I own puts, will fare much worse than cheap commodities.
I agree. I don't think we will see 5 cent coke anytime soon.<ggg> I also agree commodities look like they are bottoming. The question is how to play the game. I have taken some positions in oil companies when oil was trading below $10.00, and am trying to figure out how to play the rest of the game. Grains look cheap here, but a few weeks of good weather will drive them cheaper, ADM could be a good play in this game. I am trying to figure out how to play the metals. I have noted you think Freeport, Phelps Dodge, and IMPAY are some good ideas.
Joan |
