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| I think we are defiantly headed toward stagflation here in the US (might be there already) and I also think china is experiencing the same things. Usually this is great for commodities. At least it was in the 70's. Only difference now is there wasn't near the investment of funds in the commodities then as there are now. And now with those funds that have artificially raised prices in some commodities, are now having trouble because the banks want there money now because of there big F---up with the sub-prime crisis. So in conclusion I'm not sure how this will play out, but if I had to bet I would bet that the commodities might not be the golden egg this time during stagflation because of how much more there intertwined with the general economy. I do hope I'm wrong though as I still have 50% of my old beans and 30% of my old corn still in the bin! On the bright side supplies are still low, and the fundamentals haven't changed. We'll still need plenty of corn for ethanol, and plenty of beans for China.(hopefully:)
http://www.dnaindia.com/report.asp?newsid=1154874 | |
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