Tags: rogers | commodity | prices

Higher Commodity Prices On the Way

By    |   Wednesday, 20 May 2009 11:04 AM

While recession around the world has stalled activity recently, the global infrastructure buildout will resume soon.

And that will translate into higher commodity prices, experts say. Already, the Rogers International Commodity Index (named after inveterate commodity bull Jim Rogers), has surged almost 10 percent this year.

Rogers himself tells Forbes, "The strong fundamentals behind commodities haven't changed. All the things that have been going on the past 30 years are still in place."

And what are those fundamentals?

"Agricultural supplies are at their lowest in decades. The fundamentals didn't collapse during this last crisis, there were just huge liquidations everywhere causing price declines," he says.

"The fundamentals have actually improved because global supplies are still at record lows but because of credit conditions, farmers can't get loans for fertilizer now, and no one can get a loan to open a mine.”

Some naysayers have downplayed the rally, but "that's what they always say in the beginning of the bull market," Shawn Hackett, president of Hackett Financial Advisors, tells Forbes.

He calculates that the commodity bull market started a few months back. "No one ever believes a bull market until it's well under way,” he explains.

Rogers and Hackett have plenty of company in their views.

“The financial crisis has been much more destructive for commodity supply than demand,” Jeffrey Christian, managing director of commodities firm CPM Group, tells Moneynews.com.

“The economy should recover in 2009-10, and from there commodity demand will revive quickly, especially in China and India.”

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
Markets
While recession around the world has stalled activity recently, the global infrastructure buildout will resume soon.And that will translate into higher commodity prices, experts say. Already, the Rogers International Commodity Index (named after inveterate commodity bull...
rogers,commodity,prices
248
2009-04-20
Wednesday, 20 May 2009 11:04 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved