Thursday, May 29, 2008
commodity shakeout coming
Our global Leading Economic Indicator (LEI) is signaling that some contagion from the U.S. slowdown is spreading beyond the G7 countries, which could finally trigger a shakeout in commodity prices.
A slowing in non-G7 economic growth at a time when the U.S. is still weak could be the catalyst for the long overdue correction in commodity prices. We would hold back from putting fresh funds to work until overbought conditions and sentiment ease.
some economic catalysis to follow on my earlier post.