Warning: Are commodities about to crash?
Commentary: Everyone hearts commodities
By Brett Arends, MarketWatch
BOSTON (MarketWatch) — Copper is booming. Oil is booming. Cotton is near historic highs. Soaring raw-material costs are driving up prices for consumers, from the gas pumps to the grocery aisles. And speculators are taking record bets that prices are going to keep going up even higher.
Kasper Kierkegaard, an analyst at Danske Bank, reports from the futures markets that the speculative net bullish positions on many commodities are at, or near, record highs.
When I walked past a TV earlier today someone on CNBC was asking if copper was “the new gold.” That’s funny — I thought silver was the new gold. Maybe silver is the new copper?
But could the wheels be about to come off this bandwagon? Could commodities be heading for a massive price slump?
(Full article linked below)
