Throughout the summer we’ve been banging the commodity drum as loudly as we can as regular readers will be aware. Quite simply, we believed commodities had plunged too far into oversold territory, as QE-fuelled investors had driven up bond and stock prices, while trashing the non-interest bearing raw materials, precious metals especially. At the very…
The Short end of the stick – Copper Trade idea hypothesis – Copper is a sell through to below $260. Copper, in unison with the Precious Metals mining universe has had an exponential run since 2001 from its lows of $50.23 In 2011, unlike most of the other precious metals universe, it exceeded its…
The Goldman Sachs Commodity Index shown above is comprised of the principal physical commodities that are the subject of active, liquid futures markets including metals, energy and food. The GSCI is an excellent proxy for global demand and sentiment on the commodity front and looking at the last 4 months, the index has been remarkably…
As global growth retreats, in particular in Asia, demand for commodities is also dropping creating a surplus that is pressuring down prices. Iron ore, a commodity highly correlated with China’s growth, has seen its price in particular slashed by 45% since February last year as China’s growth has come off the boil. Copper in contrast…
The continued rising tension between China & Japan is weighing further on Chinese equities in particular with the index hovering at a new 4 year low just over the key psychological level of 2000 (see below). As we covered in our latest edition of our magazine in setting out the Buy case for the Chinese…
The Chinese Shanghai Composite Index continued its precipitous decline yesterday, closing down over 1% at 2,065 – now 6% in the red for 2012 YTD and the lowest since March 2009. The reason for the further falls was China Premier Wen Jiabao’s comments at the weekend pledging new measures aimed at stablising export growth perhaps…
