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Not benefiting yet from QE∞ are commodities, the PowerShares Ag Fund (DBA) and Commodity...

Not benefiting yet from QE∞ are commodities, the PowerShares Ag Fund (DBA) and Commodity Tracking Fund (DBC) both peaking right at the time of the Fed's September announcement. Since then, they're off 6-8%, and YTD badly lagging the S&P.
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Comments (3)
  • bbro
    , contributor
    Comments (10752) | Send Message
    It has been 471 days since Gold made a high of 1891...
    21 Dec 2012, 03:48 PM Reply Like
  • The Last Boomer
    , contributor
    Comments (1015) | Send Message
    I don't know in the short term but in the longer term the change in the Chinese growth model from investment-driven to consumption-driven spells trouble for parts of the commodity complex. Michael Pettis has a nice analysis on this.
    21 Dec 2012, 03:54 PM Reply Like
  • Tas 2010
    , contributor
    Comments (270) | Send Message
    Here's the deal with commodities, it takes real energy, real labor and deep pockets to pull these resources from the ground and bring them to market. Short term, meaning a couple years, the market can become grossly over supplied, i.e. natural gas, but this also deters future investment. At some point each producer has to face the facts of price and investors looking to perhaps fund a new mine have to ask themselves if the prices offered will offset the cost. Bottom line, the market will reset itself without any manipulation, media bias or investor sentiment. Buy low, sell high.
    21 Dec 2012, 03:58 PM Reply Like
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