Commodity Indicators for Week of November 15th
11/17/2010 0 comments
Commodities will play an increasingly important role as we climb out of the recent market mahem and inflation becomes a reality. MyPlanIQ tracks detailed weekly commodity trend movement. We use ETFs that represent commodity subgroups including agriculture, precious metals, base metals, energy and present the results here.
More details are available on the MyPlanIQ website.
Commodities can almost be split in two -- precious metals that react to currency devaluation and the rest which will be impacted by inflation and economic growth.
Most of the indicators are positive as we see turbulence in the currency markets, forecasts of a cold winter and the expectation that supplies will be tight as various economic stimulus packages spur growth.
|
Description |
Symbol |
15-Nov |
Direction |
8-Nov |
|
Silver |
SLV |
26% |
v |
34% |
|
Precious Metals |
DBP |
12% |
v |
17% |
|
Gold |
GLD |
9% |
v |
13% |
|
Base Metals |
DBB |
9% |
v |
13% |
|
Agriculture |
DBA |
8% |
v |
14% |
|
Commodity |
DBC |
6% |
v |
10% |
|
Energy |
DBE |
2% |
v |
3% |
|
US Oil |
USO |
1% |
v |
3% |
|
Natural Gas |
UNG |
-19% |
v |
-18% |
Precious metals are increasingly being seen as a currency reference point as a range of currencies that were once standards are going to be under pressure as national debt forces stringent responses. This is likely to continue for some time.
As we enter winter, the demand for oil and energy will increase, driving prices higher. This will also be impacted by the dollar as oil is traded in that currency.
Natural gas is held in check by large stockpiles reducing the liklihood of any type of shortfall even if the winter turns out to be as cold as forecasted.
labels:investment,
Symbols:SLV,DBP,GLD,DBB,DBA,DBC,DBE,USO,UNG,SPY,QQQQ,IWM,MDY,EFA,VEU,EEM,VWO,IYR,ICF,VNQ,GSG,LQD,CSJ,CIU,HYG,JNK,PHB,TLT,IEF,SHY,SHV,BND,AGG,MUB,MBB,
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