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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: elmatador who wrote (37919)9/7/2003 5:33:24 AM
From: Maurice Winn  Respond to of 74559
 
< “We believe that the 20-year bear market in commodities is at an end, and our bet is that a 10-year bull market is beginning,” they said. They pointed to China’s heavy reliance on basic commodities.>

Production costs haven't increased. Just demand. Since there's unlimited bauxite, iron ore etc, it just means that producers will make large profits, which they'll use to boost production quickly to satisfy burgeoning demand.

Boosting production quickly = rapid growth in economic activity, less unemployment, blah blah blah, everyone better off. Interest rates having to go up.

Mqurice