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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: A Horse With No Name who wrote (19097)	12/18/2004 10:45:22 PM
From: jimsioi	Read Replies (1) \| Respond to of 108728

Horse, spikes and crashes in commodities are part of the game. Commodities are different from stocks in one key feature. HIGH or low prices generally are not indicative on enduring trends...When the price rises farmers, growers particularly can increase the production of the item in fairly quick fashion. Some commodities that's not so true of but there is a general elasticity to price....as price rises demand falls and future prodcution increases....price returns to the mean or norm....usually fairly quickly and on lookers wonder what the fuss was all about. Sure Faber and Rogers have said many a wise thing...what bothers me know is that they have almost attained sainthood...whatever they say is smart....much of what they say is a guess just like the rest of us....That's my point.