Wednesday, September 27, 2006

Commodities notes

Forgot to mention that there was an interesting view of the recent commodities correction in the latest Barron's. This week's Commodities Corner surveyed a few analysts and investment professionals for their take. Is the commodities bull market over or is the recent downwave a correction in an upward trend?

For those who haven't seen it, I remember that the column was, of course, split between two bullish and two bearish opinions. Stephen Roach and another fellow were bearish on commodities, while Frank Holmes of US Global Investors and another investment manager were bullish.

I made a note of Homes' final reasoning; he remarked that the "world now has too many people and not enough commodities". I tend to agree, but a skeptic might reply that resource scarcity has generally been the rule during our time on Earth.