Oil was in a bubble of its own, well beyond the general commodity bubble.
The general commodity plunge brought down equities, which fell substantially on the session.
FORBES: After Oil Drops $10, NYMEX Extends Trading Limit To $20
One more reason not to lose sleep over the surge in oil prices is that, unlike the rises in the 1970s, it has not occurred against the backdrop of general commodity-price inflation and global excess demand.
The general market place has stabilized this week, which is a bullish factor for the gold market, which has been trading in sync with the general raw commodity sector recently.
FORBES: A.M. Kitco Metals Roundup: Comex Gold Trades Near Steady as Recent Gains Consolidated
If you follow the raw commodity markets, including precious metals, or monitor the raw commodity sector in general, then an examination of the weekly chart for the Continuous Commodity Index (CCI) is in order.
The raw commodity sector in general rallied on the news as it hints of further monetary policy easing around the world.
FORBES: Comex Gold Ends Sharply Higher on ECB Rate Cut, More Safe-Haven Demand
The central bank action has supported commodity prices in general as the banks will likely keep monetary policy accommodative as countries need to work through debt problems.
FORBES: Gold ETPs See Greatest Inflows In Third Quarter -- ETF Securities
In contrast, its competitor General Electric reallocated capital from commodity plays that had paid in the 1970s to new real enterprises like magnetic resonance machine-manufacturing, betting that discretionary income for health care was going to soar with the coming rise in affluence.
FORBES: Here's To Mitt Romney, The Corporate Turnaround Artist
Equities and commodity markets in general are down sharply as investors worry that new elections may be held next month if no coalition Greek government is formed and that the Mediterranean country could be coming closer to a default on its debt obligations.
FORBES: FOCUS: Gold Not Acting As Safe Haven, Falling With Other Markets In Tuesday's Rout
The raw commodity sector, in general, has quickly turned from bearish to bullish, from a technical chart perspective as depicted by the CCI.
If margin rule changes for a minor commodity can trigger a general price run, imagine what would happen if a series of broad based rule changes were implemented.
One reason for this is that gold has tended to follow the general price trends in the raw commodity sector and that sector tends to fare better when there is more risk appetite in the market place.
FORBES: Comex Gold Slightly Higher, Hits 3-Week High, But Firmer U.S. Dollar Index Limits Upside
With gold acting more like a risk asset lately, the easing of EU tensions has been more bullish for gold than bearish, as gold has followed the general path of the other major commodity markets on any given day.
FORBES: Comex Gold Weaker On Consolidation From Recent Price Gains
The gold market has recently been a closer follower of the general daily price movements in the raw commodity sector.
FORBES: Comex Gold Higher Amid General Commodity Market Strength
That suggests there is a speculative element to the boom, with financial investors regarding farmland as a bet on higher commodity prices or as a hedge against more general inflation.
ECONOMIST: Why Kansas and Somerset farmers should toast the Chinese
There is a general feeling that President Obama getting re-elected would be bullish for the raw commodity sector because of the likelihood of easy U.S. monetary policy being kept in place.
General Motors sees those leftover steel cutouts, roughly four feet square, as a marketable commodity.
Then, while at BellSouth, it dawned on me that buying wireless wasn't really fundamentally different from buying an airfare, because it would eventually become a commodity mostly shopped on price, and therefore the industry would follow the same general distribution path.
Following her Kraft homecoming--Rosenfeld had worked for 20 years at Kraft and General Foods before joining PepsiCo--the new chief now has to grapple with high commodity prices, an upcoming spin-off of the company from its 87% owner, Altria, and of course, fierce global competition.
Following her Kraft homecoming--Rosenfeld had worked for 20 years at Kraft and General Foods before joining PepsiCo--the new chief now has to grapple with high commodity prices, an upcoming spin-off of the company from its 87% owner, Altria (nyse: MO - news - people ), and of course, fierce global competition.
应用推荐