RE: China Commodities Demand to Rebound Next QuartHmmm, wasn’t it just yesterday that the conventional wisdom from the institutional crowd was totally the opposite? And certainly, their lemming like behavior was evident to anyone who has eyes, and can read a price chart.
Here are just a couple of their pronouncements from yesterday, with their identities withheld, to protect the guilty!
"Copper is heading toward $7,000 and we will test that to see if it holds in the near term," said Xyz Abcdefg, commodity analyst at ________________________.
"The biggest problem facing commodities now is fund selling and we fear that those funds will move their money into other asset classes such as forex," Xyz said, adding there was little chance of a substantial rebound in commodities on the horizon.
***********************************
What should investors do now?
Though he thinks commodities should be part of people's portfolios, Mr. 98765 would not recommend buying any commodities in the near term. He thinks the downdraft will continue over the next few weeks, at which point most commodities prices will find a bottom, and then establish a trading range.
"Prices are not going to collapse," says Mr. 98765. "Crude will probably fall to $95 to $100 per barrel, and then trade between $100 and $130. Copper could fall another 10%, and then move sideways."
Surely some commodities have brighter prospects than others? "I wouldn't touch any now. They are all so synchronized it will be hard for one to pop out and do well."