Invisible Hand

Olympics Ending Should Boost Commodity Driven Stocks

The commodity story is starting to unravel. The markets are starting to price in weaker global GDP growth for the next 3 to 6 months which is manifested by the stronger dollar/weaker euro and weaker gold. Europe is starting to show cracks in their growth rates which may weaken the U.S. export market. The U.S. export market has helped ease some of the pain from the weaker retail and housing markets. With a stronger dollar and a poorer Europe, this engine of growth for the U.S. may be in jeopardy. STeel demand in China is also slowing;BaoSteel recently reported that they will be decreasing prices for steel in the near term due to declining demand.