We won’t suggest that the recent lows in many commodities are solid, but value-hunt buying of copper assets by Carl Icahn, a $4.00 single-day rise in crude oil prices, and a 1,000-point, 2-day bounce in the Dow suggest that sentiment was overdone on a number of fronts.
Platinum
Evidence of US Growth Has Pushed the Dollar Up
The US economy has bulldogged its way to growth in February, despite adverse weather, ongoing energy sector layoffs, adverse foreign exchange rate action and periodic talk of rising US interest rates.
Negative Sentiment is Overblown!
Recently a talking head on a major television business program was lamenting the ongoing pressure on equities due to the weakness in energy-related shares.
The Pace of US Growth is Too Soft
Another month has drawn to a close, and US economic data has continued to be mixed and largely disappointing to the trade.
Global Economic Progress is Faltering
Global economic progress is apparently faltering, and noted fund managers are warning against having “too much equity market exposure.”
Soaring Treasuries Suggesting US Recovery is Not Sustainable
The World Economy Continues to Claw Its Way Toward Recovery
With several weeks of Dollar weakness, a series of new highs in global equity markets and significant volatility in the Goldman Sachs Commodity Index, one might view the next two weeks as extremely critical for commodity prices.
US Growth Expectations Signaling a Long, Slow Recovery
Over the last two months, the Goldman Sachs Commodity Index has racked up some fairly impressive gains, suggesting that commodities have been sensing improvement in the global economic outlook.
Overall Uncertainty Continues to Decline
The overall outlook for commodities is slightly improved from last week’s dismal view. Clearly the US economy has remained suspect in the wake of the second disappointing Non-Farm Payroll result in a row.
Suspicion Toward Pace of Growth, Commodity Markets in Downward Bias
With a second Fed tapering event recently, the reality of less accommodative US monetary conditions was mostly realized in the marketplace, and not surprisingly, equities suffered the brunt of the reality check.