Commodities Finally Falling

At 1:00 CST, the market is down about 186 on the Dow.  Gold is down over $20 per ounce.  I had pointed out on www.bizradio.com that commodites were getting toppy to me last week.  I think they will continue to take a breather along with the related stocks.  There is no question that the global demand will keep commodity prices high.  However, in the short run, this looked like a crowded trade.  Some of those stocks are getting slammed today with some copper stocks down over 8%.  Ouch. 

What I’m looking for is over the next few weeks and perhaps months is you will hear more and more chatter saying “The Fed is pushing on a string” or “The Fed cuts aren’t working”.  When that happens and commodities sell off along with all other stocks, that will be a great buying opportunity.

For now, I own some stocks and I’m short small and medium sized companies so my beta is basically 0 meaning on a down day like today I’m not losing any money.

Also, starting to see some interesting deals in various bonds.  But, for now just observing all of this from the sidelines.

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