RE: Volume??? Commodities Are OversoldMany commodity stocks are now at oversold levels, as is clearly reflected in the oscillator charts for the S&P 500 Energy Index (above) and gold (below), which show a rolling 60-day rate of change going back 10 years. Based on this information, both stocks and commodities are due for a considerable rally. In addition, many energy stocks are trading at five to six times cash flow, which should be supportive from a valuation perspective
We believe this correction, while painful, is healthy and constructive for natural resource markets over the long term. Commodity supplies remain extremely tight, and as global population and emerging economies continue to grow, these trends will be supportive of commodity prices. The risk to this scenario would be major policy changes by the world’s most populous countries that would slow infrastructure spending, which we continue to view as unlikely.
by Frank Holmes
CEO and Chief Investment Officer
Whew, so it's not just NAG then!!
----------Original Message Posted 8/25/2008 2:25:33 PM----------
not until Sept...............