The Market Hick

The End of the End-of-the-World Trade

I couldn't call that the end of the world trade- if the world ended,there wouldn't be any demand for anything. A more proper name would be 'the rest of the world is finally catching up' trade. I agree with kotika that commodities area a signal of the business cycle, while I haven't looked at the charts or statistics, I would assume that commodities and stock prices would be positively correlated to some degree and not really provide much diversification benefit. I pity the poor fool pension funds that bought into this crap that they should load up on commodities for their portfolios,this asset class does not provide safety of income which is their charge.Any pension fund manager who bought into the commodity trade should be fired, then sued.