Commodities To Rally From Losing Streak according to Bloomberg

Commodities Jun 27, 2011 No Comments

CommoditiesThe last time that happened, the gauge surged 36 percent in the next six months.
Commodities will rebound from the worst losing streak since the end of 2008 because shortages of everything from copper to palladium to corn will boost prices even if economic growth slows, should history be a guide.

The benchmark Standard & Poor’s GSCI index is heading for a second monthly drop, led by declines in silver, coffee and nickel. The last time that happened, the gauge surged 36 percent in the next six months. Speculators are holding a net 1.1 million U.S. futures and options contracts to bet on higher prices, 37 percent more than the average of the last five years, data from the Commodity Futures Trading Commission show.

The long-term perspective is that many commodities have supply constraints,” said Walter “Bucky” Hellwig, who helps manage $17 billion of assets at BB&T Wealth Management in Birmingham, Alabama, and favors gold because it will gain from financial stimulus by central banks and inflation. “That’s an environment where you want commodities in your portfolio.”

via Commodities Rallying From Losing Streak – Bloomberg.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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