Commodities and the Market (7/30/07)
The Stock Market has peaked for now, and the tendencyfor the stock market to top in the 6th and 7th years is so strong historically, the 7th year of the decade is called the "Death-Zone."
The first Phase of commodity inflation was right on schedulewith its 30-year cycle counterpart, the 1970's advance with about a 335% average gain in individual commodities.
The 1970's commodity inflationary advance took place in2 phases (1971-1974 and 1977-1980). And the 30 year cycle has been a strong ally in forecasting.
No Commodity Inflationary period since 1730, has everlasted less than 9 years, and the average inflationary advance has been around 20 years. Ours is a mere 6 years old.
Phase 2 appears to be starting with a number of markets demonstrating "bull-market" type strength.
* Soybeans are in the midst of a 2nd leg up in a bull market*
Gold and Silver are correcting now ready to move and break out of their bull market highs*
Platinum is close to new All-Time highs*
Crude Oil has potentially launched a NEW bull market*
The CCI Commodity Index made new all time highs in July*
The Goldman Sachs commodity index has come within 0.4% of an all time record*
Cotton recently broke out to the upside after a 3 year basing pattern*
12 year lows in the Dollar index and all-time lows vs. Euro is good news for rising commodity prices
We appear to be starting a fresh or the 2nd leg of commodity inflation.
Buy physical silver and gold now in your IRA's and long term investment allocations.
GG, GLD, SLV, at least 10% of your investments should be in there now.
Remember this the stock market does not like inflation, that is why the market will trend downward for some time.
The leader of the inflation is oil and it is at an all time high at $76.00 a barrel.
Oil in 2000 was $11.00 a barrel. That is almost a 700% increase in 7 years.
Now if that isn't inflation I don't know what is.
« Trivia for the Day (7/29/07) | Main | Silver Stock (7/31/07) »
