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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (36653)	2/10/2010 10:45:22 AM
From: anializer	Respond to of 78744

The Bloomberg guy who pegged Copper at 1 buck down the road refused to put a time frame on that. Regardless, it's like standing in front of a moving freight train.

To: Spekulatius who wrote (36653)	2/11/2010 7:49:27 PM
From: Madharry	Read Replies (2) \| Respond to of 78744

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.