06.10.2010 - Embrace the commodity rally sooner rather than later
From Seekingalpha.com: In fact, it is well known that when commodities are rising and inflation is high, stocks tend to underperform. Once such instance is the 1970's. From 1972 to the peak in 1980 during the Iran Oil Embargo, the CRB rose some 270%. Meanwhile, the S&P 500 actually remained unchanged from the high of 1969 to the low of 1982. If that performance doesn't make you cringe, nothing will. Below is a long term chart of the CRB which shows the tremendous change in value over the seventies and today's fledgling rally..............................................Full Article: Source
Print