| COMMODITIES CORNER |
This week, we've shown you the rising trends in consumer and government spending. Stocks that track these two sectors are soaring. One market that isn't soaring, despite some claims to the contrary, is the commodity complex.
If you watch the financial media for a week, you'll likely hear someone say commodity prices are rising due to the debasement of the U.S. dollar. While this is a serious future concern, it actually hasn't hit the market. For proof, we consult the "CRB Index".
The CRB is one of the most widely used gauges of commodity prices. It tracks the price of basic raw materials, like copper, oil, corn, natural gas, gold, sugar, cotton, and nickel. Below is an eight-year chart of the CRB. In 2005, the CRB sat around 300. Since then, it has "boomed" and "busted" several times. All this volatility has produced no price gains, however. As of this week's trading, the CRB sits around 285. It's been a long, sideways market in commodities.
If you watch the financial media for a week, you'll likely hear someone say commodity prices are rising due to the debasement of the U.S. dollar. While this is a serious future concern, it actually hasn't hit the market. For proof, we consult the "CRB Index".
The CRB is one of the most widely used gauges of commodity prices. It tracks the price of basic raw materials, like copper, oil, corn, natural gas, gold, sugar, cotton, and nickel. Below is an eight-year chart of the CRB. In 2005, the CRB sat around 300. Since then, it has "boomed" and "busted" several times. All this volatility has produced no price gains, however. As of this week's trading, the CRB sits around 285. It's been a long, sideways market in commodities.
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