Thursday, February 09, 2006

A Correction in Commodities

Primer on my investment outlook

I've been waiting for a sharp correction in commodities, and I'm a bit exposed as I actually own more non-interest bearing instruments than convertibles in my portfolio..
Marc Faber is bearish (as usual)
I still think that commodities will be the last to tank, simply because of supply inelasticity. Theres less supply of commodity investment and more liquidity than, say financials or other groups.
I still think that the latter half of the year will see a big crash, where the housing slowdown really picks up steam..