A GOOD THING

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Market Watch with Tom Waitt

Business


August_24th_2012.mp3 A Good Thing    Commodity prices have been steadily rising over the last two months. Is this a good thing, or bad?   CRB Index (Click For Larger Picture) Rising commodity prices have the media and market pundits warning of soaring inflation. Many analysts warn that the current easy money policy by global central banks will devalue currency and push commodities including food stock to levels unaffordable by many already unemployed. However bleak things seem, there is often another side to the story. In 2008 commodity prices peaked and fell 58% causing markets and the economy to crash. It took two years to recover and peaked in 2011 having risen 81% off depressed prices. Over the last year the economy and commodity prices have been subdued. Three months ago commodities bottomed out and economic activity started to pick up. The CRB index is rising but into overhead consolidation which should contain any run away prices and support is at June's low. This configuration will support increased economic growth while keeping inflation at bay. There are many opportunities to make money but it requires action on your part, each stock selected must show risk/reward of at least 2:1. Make the call - let me provide you with a unique perspective on your investments through a no-obligation consultation. Contact me by filling out the 'Unique Perspective' form on the Contact page, or by calling at 1-204-982-0633. Before trading, please contact an investment professional.