Commodity Trade Mantra

Posts Tagged ‘Bloomberg Commodity Index’

Bull Market in Commodities - Central Bankers to be Blessed with Inflation Soon

Commodities are now nearing bull-market territory after rebounding from the lowest level in at least 25 years. Investors have poured more than $17 billion into exchange-traded products linked to commodities since the start of the year. Sharply rising commodity prices since the beginning of the year are a warning sign that perhaps the inflationary times have begun.

Is The Commodity Market Trend Really Your Friend?

The commodity supercyle might be toast—but that doesn’t mean we won’t experience some wild bear market rallies. Today, you could jump on one of the great opportunities for a lightning fast hit-and-run raid on the commodities market. Commodities have found a patch of blue sky. I don’t know how long it’ll stay open, so let’s bask in the sunshine while we can.

Commodity Crash Warns Of Imminent Deflationary Financial Crisis

Overall, the Bloomberg Commodity Index is down more than 28 percent over the past 12 months, and it has plummeted by more than half since mid-2011. The exact same patterns that we witnessed just prior to the great stock market crash of 2008 are happening once again. This includes the staggering crash of commodity prices that we are currently witnessing.

Classic Signs of a Bottom in Commodities Seen

Eleven commodities have fallen 20% or more. And seven commodities – oil, gasoline, coffee, oats, natural gas, lumber, and sugar – have fallen at least 30% in the last year. We’re not saying all commodity prices have bottomed. Some commodity prices could continue to go lower. But we do think it’s likely commodities as a group are close to a bottom.

Commodity Markets In Distress As Oil Rout Continues

On the whole, 62 US oil and gas companies own $235 billion of debt, and at least 10% of that is at a distressed level. JPMorgan has set aside $140 million for potential write-downs in the coming months, with other banks doing the same. Everything is looking rather ominous. While oil producers get pummelled, miners get mauled.

Commodities Collapsed Just Before Last Stock Market Crash – Any Guess About Now?

If we were going to see a stock market crash in the United States in the fall of 2015 (to use a hypothetical example), we would expect to see commodity prices begin to crash a few months ahead of time. This is precisely what happened just before the great financial crisis of 2008, and we are watching the exact same thing happen again right now.

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