14.05.2012 - Plunging commodity prices are ominous for stock market
Consumers understandably like to see prices for commodities decline, the more the merrier, particularly gasoline and energy costs. Many analysts also take commodity price declines as a positive for the economy, on the theory that consumers will have more spending money in their pockets, and manufacturers will have lower costs, so hopefully greater earnings. Investors tend to also take declining commodity prices as a positive for the stock market on the same reasoning...............................................Full Article: Source
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