Xyrus

Not All Commodity ETFs Are Created Equal

It might make more sense to do two ratios with a common base. I'd do a ratio of gas to gold and oil to gold and plot those. I think that would paint a clearer picture.

~X~

Focusing on Commodity ETFs: Hyperinflation Seems Inevitable

Incorrect. DBC is an ETF.

~X~


On Dec 02 12:52 PM cma cma wrote:

> DBC is also an ETN, I believe, sponsored by Deutsche Bank.

Global Stock Markets: In the Grip of Fear?

There is fear driven selling and there is logic driven selling. In this case, thy happen to coincide.

One of the reasons why all these announcements of bailout and such don't sem to have any impact is because there is no truth hat these measures will do anything. That is backed up by the fact that they haven't one anything. Almost as soon as one plan is approved it either needs to be immediately increased or another plan has to be created.

That ends up painting a picture that even our "leaders" really don't have a clue to how large and deep the credit crisis really is. Until they're more certain, people in general are going to sit it out on the sidelines and cash out.

This is as much a crisis in confidence and trust as it is a financial crisis. Face it, the general populace has been lied to many time over the past in regards to the crisis. Firms have reassured their investors only to have to back track weeks later. Banks have reassured their depositors only to have the FDIC come in and take them over.

If people don't trust banks, companies, or their leaders then they aren't going to put their money anywhere near them.

And did I mention that the bailout package was extremely unpopular but was rammed through congress anyway?

Here's the truth. No one knows how bad this is going to get. The Lehman settlement showed us one thing, that things are worse than they seem. Institutions still are not being 100% forthcoming. They will be forced to over the next couple of years, but until that happens the market is going to be a roller coaster at best.

~X~

Inflation: CPI vs The Market

First, as rick pointed out, CPI is a lagging indicator for inflation. Companies have already bought their stocks of supplies at the higher prices so it takes awhile to filter through the system.

Second, commodities may have taken a beating but they are still much higher than what they used to be. CPI will most likely continue to increase, but perhaps at a slower pace than this past record setting month.

I wouldn't count the commodities out just yet, though.

~X~