It is a good time to get in on the commodities at bargain prices, in real terms, not seen since the start of the decade. With governments flooding the financial system with liquidity globally, it is just a matter of time before this flows through into higher raw materials prices – more paper chasing limited natural resources. Most commodities have formed bases, including the grains and Curde oil and interestingly Gold has not fallen along with many other commodities, proving resilient, for now.
Later this year could see some fundamental shifts in the currency markets, with the US Dollar potentially resuming its decline, which will lead to gains in the commodity currencies like the Australian and Canadian Dollar. The Euro and GBP could benefit too, but national debts are sky high in Europe and could lead to some competitive currency devaluations, we’ll see.
The stock markets continue to price in a slightly brighter future – though may have gotten ahead of themselves recently…
Natural Gas is one to watch as it has hit multi year lows, the seeds of the next price spike are being sown in this market.
Altogether it is shaping up to be another very interesting year to be trading the markets with many opportunities shaping up in the weeks ahead.
