The state of the world commodity markets can only be described as deflationary. This year has seen falling prices across nearly the entire spectrum of commonly traded precious metals, energy, grains and industrial goods.
While there have been limited bright spots in niche sectors such as coffee and cocoa, a broad-based index such as the iPath Bloomberg Commodity Index Total Return ETN (NYSE: DJP) is down more than 8 percent this year. In fact, this index is currently sitting on its year-to-date lows.
Not surprisingly, this weakness also extends to stocks of related industry groups that thrive off higher commodity prices. This includes global agriculture stocks, mining companies, energy names and more.
While this ...
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