kotika98

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

I used to be that commodities were understood to be the ultimate business cyclical sector - when economy was strong commodities were up very strongly, and vice versa. And clearly this is still the case - the bullish case for commodities was always based on the 12% growth in China and India. So the negative correlation of commodities to stocks is a bogus notion - except in case of serious geopolitical instability where you'd expect gold and oil to shoot up.
So, to believe that as the end-of-the-world is approaching and be buying commodities is sheer stupidity - because by definition end-of-the-world really means a serious recession in china.