Don’t let the markets shake you off the natural resource bull’s back!
Posted on Friday, July 25th, 2008 | In Asia, Current Market News, Market CommentaryThe sharp pullback we’re seeing in commodities has many investors wondering if the boom in natural resources has ended. My answer: Absolutely not! This correction was way overdue. It’s healthy and is more bullish than bearish. Commodities have soared for months on end without a decent retracement and shakeout. So, any pullback is unequivocally normal.
This applies to gold … oil … silver … copper … platinum … and base metals like zinc, nickel, and aluminum. Plus, coal … agricultural commodities … and more.
Indeed, you can see it in this chart of the CRB index, a basket of 19 of the most widely traded and used commodities on the planet.
Notice that uptrend. Pretty impressive. And notice how even a 20% correction wouldn’t change the long-term picture of the CRB index one iota.
What’s more, the fundamentals continue to support the long-term bull market in natural resources.
My view: Expect a 10% decline in this perfectly normal commodity pullback, and then buy like crazy!
And remember, no matter how bearish any pullbacks may appear on the surface, always look below the surface and keep the long term view in mind. Investors who do this ― and who don’t let the markets shake them off the bull’s back ― should be handsomely rewarded.
Last 5 posts by Larry Edelson
- Chinese Researchers Confident of 8% Growth - January 7th, 2009
- China Accelerates Filling Up Its Oil Reserves - January 7th, 2009
- Cautiously, Steelmakers Raise Prices, Reopen Mills - January 7th, 2009
- Dollar’s fall last week is exactly what I’ve been warning about! - December 15th, 2008
- Real values ... real opportunities ... and real money ... - December 12th, 2008
 About Larry Edelson (http://blogs.moneyandmarkets.com/blog/real-wealth)
With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research’s customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors. Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com Mr. Edelson holds a B.A. degree from Columbia University. |
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