Sunday, December 14, 2014

Watching Commodity Prices Like a Hawk

No, this isn't another panic blog declaring we're in the middle of a market crash.

However I am a bit skeptical on the analysts saying the Bull Market is still running. The global economy is slowing, and if you think that doesn't matter and corporate America will make it up back home think again. Corporations make over 40% of their revenue overseas. Having that slow is going to effect growth.

By now everyone is aware of oil's decline. But people haven't paid as much attention to commodities as a whole. They're all falling, and that's not good. It hurts the stock market, but more importantly these huge industries will end up cutting jobs if it's serious enough. Add to the fact the fed conveniently decides to end QE (which effects people getting loans, credit cards, etc.) While people shouldn't depend on these things, a lot of people do. When these income sources get cut off rents don't get paid and business slow down.

 The market could be in a "reset" or the Bull could be running out of steam. More then stock prices, I'm watching commodities and paying attention to global headlines.

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