The sell off in commodities over the last two weeks has investors re-thinking the markets. Commodity stocks, especially in the energy area, have led the markets for over a year. Will this pull back in the commodity sphere prove temporary and shallow or is there something deeper afoot?
No question, most commodities have suffered a serious set-back led by silver, which at its worst, experienced a 25% decline before bouncing later this week. Oil also dropped over 13% and a long list of hard and soft commodities had similar declines. This selling spree has dragged the stock market with it.
“That makes absolutely no sense,” argues one Bennington,VT client who rightfully believes that declining prices for commodities is a good thing for the economy, the consumer, corporations and the market.
sector rotation time?