TheRealBull

Riots in Egypt and the Price of Wheat

With Peak Oil at our door, you haven't seen anything when it comes to shortages and rioting.

Why I Am Cutting Back on Commodities

You are crazy to sell off commodities at this point. Fundamentally we are at the end of cheap food, energy, and materials. China, India, and the Middle East, half the world's population, is industrializing and putting huge demands on everything we now take for granted in the US. This in no longer an American market picture. If you treat it as that, you will surely miss out on cheap prices and what is to be the largest bull market in commodities in history.

Will there be volatility? For sure. You need to see past quarterly returns and look at the larger long term picture. With oil heading well north of $100 a barrel and food prices soaring while shortages are beginning to emerge, you can bet we will see higher prices in the long run until we decide to "renegotiate" our current standards of living to accommodate a world with less to give.