Jim Letourneau's Blog

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Commodities Collapse Ending?

Commodity investors have been enduring some sharp pullbacks this year. The $CRB (Commodities Research Bureau)Index chart below shows the sharp spike and subsequent pullback nicely

The "big picture" trend for commodities remains upwards as it takes 10-15 years for supply/demand issues to balance out. Mines, pipelines, tankers, and rail systems take a long time to build.

The bullish log scale parallel trend channel remains intact. It is better to buy at the green line than the red line.

Commodities Research Bureau Index