Doug Roberts

David Fry's Daily Market Outlook

Hi David -
Your lines on the FXI imply that it will go lower. Everybody write about the contagion in China.

Let's be clear - the bottom of the Shanghai market was the first day it fell. Since that first day it has rallied more than 5%.

I suppose you know that FXI are all state-owned companies.

Doug

Commodity Prices Can Decline Too Fast

Hi David -
I read all your posts and usually find them informative. This post is a bit puzzling.

The Fed has made inflation their focus. If inflation declines then they will back off on interest rates. That is noncontroversial. If inflation stays above the Fed's target zone while commodities decline precipitously then I expect the Fed would stick to an inflation fighting stance. This point may be moot since it would be unlikely for inflation to stay high while commodities decline fast. Nevertheless, I do not agree with your statement that "If commodities do pick up speed on their move to the downside, then you can bet that the Federal Reserve is going to be moving fast by lowering interest rates."

Thanks for all your research.
Doug Roberts