March 10, 2008
Either edible or wearable its all about commodities, inflation continues to heat up. With the FED looking to cut rates the net result being a weaker dollar and higher inflation. But unlike the 1970’s were the small investor had real estate to lean onto this time around it’s simply all about commodities.
The current state of the market looks a bit precarious .We continues to flirt in an eerie manner with significant market break downs. The light volume and lack of direction is symptomatic with lack of conviction. Even the market leaders are starting to crack.
The bond market continues to signal significant strains on bank credit and risk continues to grow for a credit break down. Yikes…
But remember the market leaders such as energy, agro .metals and mining will quickly resurrect themselves after any major short term sell off. Unless the market fundamentals are significantly somehow changed.