Citigroup Makes a Case for 'Crumbling Commodities'
Citigroup's Tobias Levkovich says commodity prices appear to be "on the verge of correcting meaningfully as deleveraging in various asset classes continues to play out." Such a correction could spill into investments in areas such as agriculture, mining machinery and energy equipment, seed and fertilizer stocks, and alternative energy, Levkovich wrote in a note to clients:
"A number of catalysts may be coming together to end the current commodities craze, including the likelihood that developed economies' industrial activity will be weaker than expected by midyear, that China trims production to alleviate pollution before the Beijing Olympics, and that the dollar faces possible currency intervention as Europe and Japan try to maintain export competitiveness, and potential American job losses end inflation fears."
Tags: Citigroup
Tools: 
Share
|
| Comments (13) | Print
Reader Comments
Thoughts on blogs
All this free advice, and here I am spending hours every night studying technical charts, reading publications, and following overnight world markets. It just made me realize how fortunate I am to have paid a measley $295 US for a subscription to a newsletter that has been laying out these ideas for a long time. I feel prepared for what's to come and I'm ready to bolt for the exit, when it's time. This is a volatile market and no one can predict or know which way it will turn today, tomorrow, or anytime for awhile yet. It's best guessing, otherwise, all of you would have bought Bear Sterns in anticipation of a super sweet offer. And to that guy that is looking for advice: Why are you even in the market?
This time it really, really, really, really is the end of the commodity "bubble"
Yes, I know I've called 17 of the last 3 crashes, but this time I could be correct!
3 B Chindians, Brarussians don't give a ratz azz what is going on in the US. US housing has been slowing for 18 months. Yet Cu inventories are near record lows again. Curious correlation.
And how about iron ore and coal demand? How come prices are rising strongly? 70% increase for iron ore this year. Coal is going thru the roof. Don't consumers "know" we are in a recession??? How dare they continue to demand more product and push up prices while the "experts" at Citi are short?
funny
this from a guy who never saw the commodity boom, credit bubble nor the housing bust.......a 4 day correction due to forced margin selling and this clown says its the end.
This illustrates how bad (and biased) wall street research really is
advertisement
