Commodity Tree Shaking - A Buying Opportunity?

The financial markets have been extracting money from the public at large by creating an environment where people pay higher prices for fossil fuels and pay more for retail commodity products or receive less of a product in a container for the same retail price.

All this occurs while the average American asset base is losing value due to our Federal Reserve printing press, printing money which devalues the US Dollar.

Recent trading in oil and gasoline futures was briefly halted when the slide in gas prices reached 25 cents, triggering a preset circuit breaker. That circuit breaker was reset and trading resumed. This in the face of tremendous flooding which will hit the lower Mississippi River and will likely affect refineries in the South reducing gasoline supplies just its normally highest seasonal demand. When demand rises and supply falls, prices rise!

The US Dollar jumped against the euro as convenient fears rise again about another European crisis due to Greece defaulting on their debt. Every time a dollar reversal is determined necessary all financial channels start talking about the PIG’s and how the European Community is in trouble. Coincidence?

As the easily accessible supply of oil is diminished while the world’s population grows there will be a continued rise in the costs of all fossil fuels. The laws of supply and demand suggest the price of oil, gasoline and food stuff commodities will continue to rise. This will happen as the world population grows and further industrialization stresses our natural resource capacities.

Now is the time to determine at what level of pull back you will decide to invest in the future rise of these commodity prices.

Alternate investments to maintain your asset base to counteract the continued devaluation of the US dollar is to invest in funds like FXA and FXC (Australian and Canadian currencies)

Healthy Trading!