stockdude

Why I Don't Own Commodities

One item that just about everyone is ignoring is that the amount of people and companies that are out there looking for oil, gold, silver and other commodities is at or near record levels. Petrobras has already discovered a huge find of oil off the coast of Brazil, Canada has a huge potential supply of oil in the oil sands area. Although it will take time for these companies to bring the oil to market once they do there is no question in my mind that prices are headed lower and not higher as most people think. Now, in the short term I would not be surprised to see commodities continue higher but long term most commodities are a poor play.