Fighting Yoda

Take Advantage of Weakness in Metals and Mining

Recession and Deflation is never good for commodities. We have both. China will stop supporting commodity prices (likely already has), producers will stop cutting production - price declines will accelarate.

Preview from Europe: When Green Shoots Are Actually Dandelions

The green shoot euphoria will fade, equity price correction will happen, like all bubbles this mini bubble will meet its rightful fate.

The Real Reasons Fertilizer Stocks Are In the Dirt

The commodity bubble has burst. The valuations are based on current future price of the commodity. The prices are coming down rapidly - share prices are following.

Commodity prices are very cyclical. On the up move all kinds of stories are written - Chinese protein intake, world population growth,....But we know as demand increases supply quickly follows - the glut will crash the prices. There is no peak supply story for fertilizers.

This bubble was created by the hedge funds and the Wall Street marketing machine, they made their quick buck. Lot of gullible investors are now left holding the baby and dreaming.

With the deep recession and the great unwind on hand beware of commodities. These are the classic falling knives – they may not just cut your hands the big ones may actually behead you.

No position in fertilizers, out look very bearish.