Morning Report Tuesday 21 July 2015
Do We Buy Commodities as they make multi year lows?
At MarketMatters, we have experienced a very solid few years by avoiding investing in all resource stocks, only enjoying the occasional foray into short term trading positions. Last night, commodities plunged to multi year lows, dragging the resource heavy and highly dependent correlated countries, like our correlated brethren Canada down (-1.5% overnight) - see chart 1. Markets are very interrelated as discussed previously, we consider pieces of the puzzle to establish our view of the future road map. The controlling influence on markets at present is the $US, which has experienced a phenomenal bull run over recent times. We believe the current $US advance has another 3-4% prior to a 10-15% correction…sounds familiar?
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