| The drop in Chinese construction is pulling the rug out from under commodity prices, so investors seeking to do some bottom fishing may want to get out their rods and reels, said Patrick Chovanec, chief strategist at Silvercrest Asset Management. "This is the point in the cycle where you actually want to start looking for value and getting ready for the next part of the cycle," said Chovanec.
Regarding the Chinese decision to devalue its currency, Chovanec regards the policy as a mistake because it further limits the U.S. Federal Reserve's ability to maneuver. The People's Bank of China's so-called "one-off" correction was taken a step further on Wednesday as the central bank devalued the yuan by another 1.6% after a 1.9% devaluation a day earlier...............................................Full Article: Source
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