Commodity Prices Soar

[CountryBoy]

There are two primary forces at work...... One is the continuing need and demand by emerging nations for raw materials.... The second is the extra pile of money that the U.S. Federal Reserve is printing that is finding its way into the commodity markets....

Now to the $600 billion of extra dollars sloshing around the world. This money is not going to create more jobs.....

Cotton is up 100%
Gold has risen 29%
Soybeans are 27% higher
Corn is 39% higher
Copper is up 21%
Crude oil rose 9%

http://www.bloggingstocks.com/2010/11/10/commodity-prices-soar/print/

And these increased prices are paid for by the consumer.

 

[tsptalk]

There will be an interview with Jeremy Grantham on CNBC played at 4 PM ET today. I have seen bits and pieces of it and this guy seems to know his stuff. He says these commodities may have run up too quickly for now, but that 10 - 20 years out, you will do very well buying them on dips.

The bad news...

"Grantham recommended institutional clients to sell into this rally. He is convinced that stocks are overpriced and cash is now the avenue for investors.

"As an investment strategist for the past 30-years, Grantham has long been known for his timely calls."

He says we may be able to speculate for another year, but then be careful.

Can't see the interview? Here's the transcript... http://www.cnbc.com/id/40131748

 

[mick504]

CB...thanks for posting some commodity prices...I also heard said that countries need to produce more rice to fulfill the needs of increased populations around the world. I'm in Asia currently and food prices are increasing alot. I think this is only the beginning and the QE2, and the next quarters are going to cause inflation by buying debt via printed money...and I can't see how lowering the interest rates a little will help sell houses. I don't understand why stock prices have increased lately except for continuing the Bush tax cuts, and the Repubs got back in. If we can cut some debt and downsize we will be in better shape. Look at the UK....downsizing govt and debt. What bothers me most is that socialism is being shoved down our throats by various individuals in the US in a very orchestrated way. Creeping in slowly...others may disagree...and that's the problem, they are not paying attention...too much football...My view!

 

[KevinD]

Heres the video of Grantham on CNBC.

http://www.cnbc.com/id/15840232?video=1640401359&play=1

 

[tsptalk]

Heres the video of Grantham on CNBC.

http://www.cnbc.com/id/15840232?video=1640401359&play=1

I highly recommend investing the 29 minutes it takes to watch this video. A little dry, but I was very impressed with Mr. Grantham. I think I will add the link to my signature - it's that good.

 

[Birchtree]

Nah, nah, way too bearish for my liking. I encountered him several weeks back and realized he's English.

 

[tsptalk]

What you like is of little consequence to what will happen.

Because of the QE, he actually thinks we could see 1500 on the S&P before another major correction.

One thing that strick me was his belief that both stocks and bonds will come down hard in the coming years. This is why the TSP needs to give us another option or two. No one is talking about a REIT fund anymore. That may mean it is time to get one.

 

[Nate]

Liked the video
Went along the lines of my gut feeling.

 

[CountryBoy]

Secret Walmart Survey Shows Inflation Already Here

There might not have been a second round of quantitative easing, if Federal Reserve Chairman Ben Bernanke shopped at Walmart.

A new pricing survey of products sold at the world’s largest retailer [WMT 54.13 -0.21 (-0.39%) ] showed a 0.6 percent price increase in just the last two months, according to MKM Partners. At that rate, prices would be close to four percent higher a year from now, double the Fed’s mandate.

http://www.cnbc.com/id/40135092

 

[CountryBoy]

No Inflation? Grocery Stores, Gas Prices Tell Different Story

From grocery stores to gas stations and most other consumer stops in between, price inflation is shaping up to be the biggest economic story ahead.

Whether it's how much you'll pay for home heating oil or a loaf of bread, don't believe the non-hype: Even if traditional measures of consumer prices aren't yet showing major increases, consumers know what they see.

http://www.cnbc.com/id/40132000

 

[Bullitt]

How much of this is front running the Fed? Commodities are the final bull market and investors would rather chase the few assets in bull markets than sit in cash. This will end in tears. Sugar down 22% in only 3 days as supply and demand splashes cold water in the face of a leveraged mania.