Tuesday, February 16, 2016
Commodities: The Bottom Is Looking Mighty Ugly | Seeking Alpha
Commodities: The Bottom Is Looking Mighty Ugly | Seeking Alpha: Last week was an odd one in the commodity sector. While the bear market continues to cause low prices in the energy and industrial commodity sector, precious metals exploded higher. Divergence is the name of the game in the wild markets of 2016. Volatility tends to create divergence in terms of historical price relationships between assets. However, the current level of volatility and divergence within the commodity sector could be flashing a real warning sign for industrial commodity prices as well as other assets including equities, debt and currencies. Before you continue reading this piece, I forewarn you - the takeaway is not a pleasant one.