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Zooming Commodities Could Crash And Burn Quickly


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HOLA441
One sure way to lose money as an investor is to buy something strictly because it keeps going up.

Technology stocks proved it in 2000. Housing proved it in the years that followed.

Now, analysts are warning investors not to become carried away with commodities. Although gold, oil, metals and agricultural commodities have been breaking records and enriching investors while stocks been losing, many analysts are growing skeptical.

"The price trend in wheat, oil and gold appears to be similar to the ones seen in the late 1990s for the Nasdaq, and in the mid-2000s for home builders," Citigroup strategist Tobias Levkovich said last week.

Full article here:

http://www.chicagotribune.com/business/you...0,432614.column

Edited by The Masked Tulip
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HOLA447
Sure it isn't :P

All those folks jumping out of stocks and into commodities are in it for the long run.

Gold is not a commodity. It is a currency. Its price does not go up or down. The number of dollars/pounds/etc etc required to buy it merely goes up and down.

Edited by Errol
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HOLA4412

I've noticed in several markets (such as UK housing in early 07) that a bit of "worry" occurs at the top of a bubble, its like a point of recognition. Apparently it happened at the Nasdaq top. There was also worry before the credit crunch over the liquidity bubble. This isn't pervasive enough to be called bearish because traders are overwhelmingly long commodities.

Its the right position for commodities to drop off the credit bubble rollercoaster, (US) housing topped in 05, stocks 07, commodities were the least reliant on the deluge of credit so this year would be a good year for a commodity top.

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