Commodity runs up

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/02/20180227-DBC.png” description=”Commodity (DBC) is sitting at the bottom for a while. Although the commodity index broke up few months ago, the surging power has not been strong enough. Once another selloff takes place in the stock markets, commodities have a great potential.” source=”http://www.economicsignature.com/wp-content/uploads/2018/02/20180227-DBC.png” title=”Commodity run”]

While the stock markets are topping out, free money is looking for the next opportunity. Commodities are usually the last run in a bullish market. Referring to the chart, commodity (DBC) is sitting at the bottom for a while. Although the commodity index broke up few months ago, the surging power has not been strong enough. Once another selloff takes place in the stock markets, commodities have a great potential.

Accidentally, there is an interesting phenomenon happening in Taiwan. The pulp price has increased dramatically in the past year, leading to more expensive pulp-related products, such as toilet tissues, facial tissues, and paper towels. Pictured (source: udn.com) is a grocery store where all of these products are nearly wiped out by consumers. These products are out of stock in wholesalers either. I am pretty sure the pulp and paper industry profits very well.

It is worth to study the next commodity run.

 

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