Tuesday, June 01, 2010

The Double-Dip Signal?


The biggest slump in commodities since Lehman Brothers Holdings Inc. collapsed is undermining Wall Street forecasts for accelerating economic growth and higher prices for everything from copper to crude oil. The Journal of Commerce commodity index that includes steel, cattle hides, tallow and burlap plunged 57 percent in May...

Well, maybe it's not bad news; maybe it's just a correction.

As a group, the OECD’s 30 member nations will grow 2.7 percent this year, the organization said. The expansion will reach 3.2 percent in the U.S. and 10.1 percent in China, according to separate surveys of economists by Bloomberg last month.

“The market is underestimating the strength of the fundamentals and overestimating the impact that the European sovereign-funding issues will have on growth,” Jeffrey Currie, a Goldman Sachs analyst, said in an interview from London. He says the decline is a “buying opportunity."

What about copper, the (arguably) best industrial indicator?

Copper, a commodity former Federal Reserve Chairman Alan Greenspan saw as an economic indicator, declined 7.4 percent in May, the biggest monthly slide since January,...



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