29.04.2015 - Commodities Rout Over ... For Now
Commodity prices continue to be overwhelmed by slack demand, over-supply in many parts of the complex, a strong U.S. dollar, and weak economic growth. Add to this the ever present geopolitical factors (an inevitable and key component of price formation). Continued price weakness (and volatility) across the complex continues. Many consumers, meanwhile, are reaping the short term benefits. Commodities remain the dismally performing asset class, with the slowdown in China, over-production, extensive QE, and dollar strength among those continuing to undermine prices. However, prices have been declining so much for so long now that we may have reached a short-term price bottom, beyond which it’s difficult for any more softening...............................................Full Article: Source
Print