May 2017 Editors Comments

Moore Research Center, Inc.

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May 2017 Editors Comments

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Physical Commodities

Commodities have become an asset class generally ignored by investors.  Does everybody still want stocks?  Really?

Yes, yes - inflation is/seems low.  Interest rates are low.  Tax cuts are (supposedly) on the horizon.  World GDP growth may be slow but is/seems steady.

Major commodities seem overburdened with supply.  Way too much oil - with the potential for much more on any price rise.  Too many soybeans on hand, enormous South American crops being harvested now, potentially enormous US crop.  Plenty of corn.

Plentiful supplies of wheat, but wait what's this?  All US planted wheat acreage estimated to be the lowest since records began in 1919? US corn planting is just barely getting started, and soybeans
are a month away.  Weather can be shall we say variable.

What if the US dollar weakens?  What if the US stock market weakens?  Where will money go?  To the bond market?  Really?  When the Fed wants to raise rates?

Do wise investors buy markets that everybody else wants to buy?  Or do they buy markets that nobody is even thinking about?

Maybe we should be ready to ...

Trade 'em,

Jerry Toepke
Last Updated on Wednesday, 05 April 2017 05:28  

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