There Is No Commodities Bubble Say Economists
May 8th, 2008 | By Contrarian Profits | Category: Featured, Financial NewsThere is no commodities bubble, at least according to the majority of economists surveyed by The Wall Street Journal.
This from the WSJ:
Fifty-one percent of the respondents said demand from China and India was the prime factor in soaring energy prices, and 40% said demand was the chief contributor to rising food costs. Constrained supply was cited second most-often; 20% blamed supply problems for higher food prices and 15% for increasing energy prices.
“It’s a combination of demand and supply issues,” said Joseph Carson of AllianceBernstein.
“Soft commodities are now the best-performing sub-set of the commodity bull market,” says Eric Roseman in the Offshore A-Letter.
“The world’s supply is withering. The demand for these precious commodities is booming in emerging markets, while the world’s crop yields are plunging, trade restrictions are suppressing supplies and the bio-fuel craze is stealing crops for energy, rather than food.
Read on to find out about the blizzard of commodities ETFs launched over the last 12 months. These new ETFs allow both individual and institutional investors access to hot commodities like coffee, wheat, sugar and corn, to name only a few.
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