The truths,the probabilitiesLeveraged Hedge Funds are Major Drag on Commodities
https://www.kitco.com/ind/Holmes/holmes_sep152008.html
Some excerpt from above article
THE TRUTHS
“Adding to the downward pressure are other rumors that “rogue” hedge funds are attacking like sharks when blood is in the water. These predators are allegedly aggressively short-selling the stocks that are in the portfolios of their vulnerable peers, which sends prices even lower.
These hedge fund sharks don’t care about fundamentals or portfolio turnover; they’re just short-term traders hungry for a quick profit. “
THE PROBABILITIES
“Infrastructure spending is the foundation of future commodities demand. We are looking at strong and steady growth in infrastructure spending over the next decade, with most of the billions to be spent on building roads, airports, power generation.
More than $21 trillion is expected to be allocated to infrastructure in emerging markets from this year through 2017, most of it in , followed by and , and .
alone accounts for nearly $9 trillion in this long-term estimate and ’s share is pegged at close to $3 trillion. Billions more will be spent in , and to repair and replace aging infrastructure.
The government in has made it clear that strong economic growth is its priority, even if it leads to higher inflation. But that pace of growth, in and elsewhere in the developing world, cannot continue without more and better infrastructure. This recognition that infrastructure spending is a down payment on future growth may keep these projects a priority even in difficult market conditions.”
by Frank Holmes