| A week after the Federal Reserve announced its plan to keep interest rates low, it inadvertently bolstered the appeal of the dollar over raw materials as a store of value.As a result, while U.S. equities are on the rise, global commodity prices have hit a five-year low. But is the commodities slump simply an issue for the natural resources industries, or is it cause for concern for the larger economy?
This week’s Chart of the Week shows that the Bloomberg Commodity Index, Brent crude and iron ore are all in a slump. The Bloomberg Commodity Index, an index of 22 raw materials, dropped 5.6% this year. Brent crude dropped 12% – hitting a two-year low last week. The iron ore at the Chinese Qingdao port dropped 41% this year – hitting a five-year low last..............................................Full Article: Source
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