TheRealBull

Oil and Commodities Pricing: Fundamentals, Bubble or Manipulation?

Sure we are in bubble territory with commodities.

That is why the US oil supply inventory is in decline, the dollar has lost 1/3 of its value in the past 8 years, food prices are going parabolic, and the economy is robust and expanding. In addition, there is no price pressures coming from China and India, their use of oil is contracting, their demand for food and the Western lifestyle is contracting.

We just don't get it. We long ago threw out any real fundamental knowledge of the markets. No wonder our financial system is collapsing. There is a true lack of vision and this is quite apparent with many of the arguments posted. Bottom line, America is so full of themselves that they don't even see the rug being pulled out beneath them.

Don't Get Caught in the Dot Commodity Bubble

We are so far from this being a commodities bubble, it ain't even funny. When half the world's population is industrializing, you can bet the basic building blocks are going to go up in price. Who cares about short term fluctuation's in commodities price. Be happy you may have an opportunity to buy them on sale. The question is how much is copper going to cost in 5 to 10 years from now while China and India (nearly 3 billion people) upgrade their lifestyles to be more on par with the US? Do we have large stock piles of commodities lying around just waiting to bring the price down? Has US environmental laws allowed mining to actually keep large stock piles of materials? Does the price of oil indicate we are awash in black gold? Wake up! This is not a US market story anymore. Its about a very tight supply of materials from the rapidly growing demand from China, India, the Middle East, and even Russia. If you think we are in a bubble, you are definitely not looking beyond your borders.