The sharp pullback we’re seeing in commodities has many investors wondering if the boom in natural resources has ended. My answer: Absolutely not! This correction was way overdue. It’s healthy and is more bullish than bearish. Commodities have soared for months on end without a decent retracement and shakeout. So, any pullback is unequivocally normal.
This applies to gold … oil … silver … copper … platinum … and base metals like zinc, nickel, and aluminum. Plus, coal … agricultural commodities … and more.
Indeed, you can see it in this chart of the CRB index, a basket of 19 of the most widely traded and used commodities on the planet.
Notice that uptrend. Pretty impressive. And notice how even a 20% correction wouldn’t change the long-term picture of the CRB index one iota.
What’s more, the fundamentals continue to support the long-term bull market in natural resources.
My view: Expect a 10% decline in this perfectly normal commodity pullback, and then buy like crazy!
And remember, no matter how bearish any pullbacks may appear on the surface, always look below the surface and keep the long term view in mind. Investors who do this ― and who don’t let the markets shake them off the bull’s back ― should be handsomely rewarded.
Related Posts
- What The Heck Is Going On With Gold? (10/23/08)
- Don’t let the short term fool you … natural… (10/07/08)
- On-the-ground in Asia … (09/08/08)
- Bernanke Knows the Dollar is Doomed (06/04/08)
- Gold’s bull market not over by a long shot! (08/12/08)
