. One or two weeks of weak commodity action is a common occurrence in a bull market shake-out. But as long as the underlying economic fundamentals remain unchanged, you can expect the long-term commodities bull to continue.
The only fundamental change that could possibly end the commodity boom would be a sudden drying up of demand. And the only way that could occur is if a major economic catastrophe arises in the U.S.
I don't see that happening. Rather, last week's action suggests to us the approach of a trough in economic activity (i.e. growth should resume nicely).
That doesn't mean Mr. Bernanke will start raising interest rates soon. Far from it. He still has much work to do to keep the pumps going and prevent our economic ship from sinking below the waves. The difference is that, a few weeks ago, the market seemed to feel that Bernanke's actions would not be enough, and that the economy might soon start to look like the Titanic, post-iceberg.
Now however, the market knows Bernanke is taking his job seriously. We're still sitting low in the water, but the crew is working hard. The pumps are chugging along and the repair effort is certain to succeed.
Buy gold and silver stocks on this correction.