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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCommodities Are Crashing Like It's 2008 All Over Again
ear commodities investors: Welcome back to 2008!
The meltdown has pushed as many commodities into bear markets as there were in the month after the collapse of Lehman Brothers Holdings Inc., which spurred the worst financial crisis seven years ago since the Great Depression.
Eighteen of the 22 components in the Bloomberg Commodity Index have dropped at least 20 percent from recent closing highs, meeting the common definition of a bear market. Thats the same number as at the end of October 2008, when deepening financial turmoil sent global markets into a swoon.
A stronger U.S. dollar and Chinas cooling economy are adding to pressure on raw materials. Two of the indexs top three weightings -- gold and crude oil -- are in bear markets. The gauge itself has bounced off 13-year lows for the past month.
Four commodities -- corn, natural gas, wheat and cattle -- have managed to stay out of bear markets, due to bad weather and supply issues.
Hedge funds are growing more pessimistic as the year has gone on. Money managers have slashed bets on higher commodity prices by half this year, anticipating lower oil and gold prices.
more...
http://www.bloomberg.com/news/articles/2015-08-05/commodities-meltdown-hits-2008-levels-of-bearishness
ladjf
(17,320 posts)orwell
(7,775 posts)...or so I've been told ad nauseum from all the Right Wing Con hucksters.
Commodities have bull and bear markets just like any tradeable assets. There is nothing special about them.
If you want to trade then trade. Don't get married to your positions.
If you want to invest, diversify and don't sweat the ups and downs.
And so it goes...
Purveyor
(29,876 posts)taught_me_patience
(5,477 posts)Doomers have been waiting for a crash for years now... not gonna happen anytime soon.