04.10.2010 - Commodity bulls should be grateful to the Fed
From Seekingalpha.com: Commentators claim that commodity prices have recently risen because of the expectation that the Fed seems about open the money taps much further. Until unemployment diminishes and credit supply recovers, the real economy will not be able to absorb a lot of additionally created liquidity. Therefore, this extra money will largely flow to the financial markets. In the past years, investors have increasingly regarded commodities as a normal part of a properly diversified portfolio. So if more money becomes available to the financial markets this will not just put upward pressure on stocks but also on commodity prices...........................................Full Article: Source
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