Why Commodities are at a 13 Year Low After fou
Post# of 579
Posted On: 07/27/2015 2:54:02 PM
Why Commodities are at a 13 Year Low
After four years of ongoing losses for the TSX Venture, the recent (huge) selloff in commodity related stocks was a severe financial and psychological blow to investors. Just when most were thinking it couldn't get worse - it did. The situation was made worse by the fact that both gold and oil were hit hard at the same time.
If you own or plan to own any commodity related stocks for the remained of 2015, take a few minutes and listen to this video from Ed Morse, head of commodities research at Citigroup Global Markets. He discusses the reasons for this selloff.
http://finance.yahoo.com/video/bull-market-co...52140.html
Near the end you will hear him discuss copper (which he is bullish on for year-end). Oddly this completely defies the copper outlook Goldman Sachs just released - which is very bearish. Ed Morse is very intelligent but so are the analysts from Goldman Sachs.
This highlights the problem of investing in junior mining or energy right now. While we get consensus on many things, there are often very divergent signals and it makes investing extremely difficult. Even on the blue-chip side we will see Google or Amazon rally, yet within the same week Apple releases big numbers and the stock sells off hard.
For large professional investors and institutions, it appears their left hand doesn't know what the right hand is (or should be) doing. So as small investors, where does that currently leave us?
Be sure to watch that interview with Ed Morse, as Canadian investors it is VERY important to understand what is happening with commodities because it not only affects our investments, but the Canadian dollar and interest rates.
After four years of ongoing losses for the TSX Venture, the recent (huge) selloff in commodity related stocks was a severe financial and psychological blow to investors. Just when most were thinking it couldn't get worse - it did. The situation was made worse by the fact that both gold and oil were hit hard at the same time.
If you own or plan to own any commodity related stocks for the remained of 2015, take a few minutes and listen to this video from Ed Morse, head of commodities research at Citigroup Global Markets. He discusses the reasons for this selloff.
http://finance.yahoo.com/video/bull-market-co...52140.html
Near the end you will hear him discuss copper (which he is bullish on for year-end). Oddly this completely defies the copper outlook Goldman Sachs just released - which is very bearish. Ed Morse is very intelligent but so are the analysts from Goldman Sachs.
This highlights the problem of investing in junior mining or energy right now. While we get consensus on many things, there are often very divergent signals and it makes investing extremely difficult. Even on the blue-chip side we will see Google or Amazon rally, yet within the same week Apple releases big numbers and the stock sells off hard.
For large professional investors and institutions, it appears their left hand doesn't know what the right hand is (or should be) doing. So as small investors, where does that currently leave us?
Be sure to watch that interview with Ed Morse, as Canadian investors it is VERY important to understand what is happening with commodities because it not only affects our investments, but the Canadian dollar and interest rates.
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