Commodities Outlook For The Remainder Of 2012: Conclusion
AAA
  1. Commodities Outlook For The Remainder Of 2012: Introduction
  2. Commodities Outlook For The Remainder Of 2012: Different Story In Second Half
  3. Commodities Outlook For The Remainder Of 2012: Energy
  4. Commodities Outlook For The Remainder Of 2012: Natural Gas
  5. Commodities Outlook For The Remainder Of 2012: Coal And Uranium
  6. Commodities Outlook For The Remainder Of 2012: Precious Metals
  7. Commodities Outlook For The Remainder Of 2012: Base Metals
  8. Commodities Outlook For The Remainder Of 2012: Agriculture
  9. Commodities Outlook For The Remainder Of 2012: Conclusion

Commodities Outlook For The Remainder Of 2012: Conclusion

In summary, I believe commodity pricing will improve through year end. This is based on the belief there will be a QE3, and China will have a soft landing. Europe will continue to lag, but the euro will not disband. The U.S. economy should continue to do well, and easing will aid commodity prices. I think Europe's problems could be worse and take longer to overcome, as it seems disinterested in an aggressive stance. Keep in mind that these estimates could change significantly by just one of these variables being better or worse than expected. If there was a commodity to watch it is oil, and the problems in Europe could cause a big move in the price of Brent. We will continue to see Brent trading at a significant differential to WTI. There is an upside to natural gas in the U.S., but this could take some time to realize. Coal will continue to be weak in a low natural gas price environment. Gold is a great way to play inflation, and the further cutting of the dollar by the Fed. Other precious metals will not be so lucky. The base metals will trade sideways for some time. Agricultural commodities will improve in price, but corn could be the best way to play this. One thing I am fairly certain of is the financial crisis in the U.S. and Europe has created a fear of deflation that could easily over correct. If this is the case the problem isn't deflation, but inflation.


  1. Commodities Outlook For The Remainder Of 2012: Introduction
  2. Commodities Outlook For The Remainder Of 2012: Different Story In Second Half
  3. Commodities Outlook For The Remainder Of 2012: Energy
  4. Commodities Outlook For The Remainder Of 2012: Natural Gas
  5. Commodities Outlook For The Remainder Of 2012: Coal And Uranium
  6. Commodities Outlook For The Remainder Of 2012: Precious Metals
  7. Commodities Outlook For The Remainder Of 2012: Base Metals
  8. Commodities Outlook For The Remainder Of 2012: Agriculture
  9. Commodities Outlook For The Remainder Of 2012: Conclusion
RELATED TERMS
  1. Ginnie Mae Pass Through

    A type of investment issued by the Government National Mortgage ...
  2. Agency Swap Program

    A form of securitization whereby single-family residential mortgages ...
  3. Accelerated Return Note (ARN)

    A short- to medium-term debt instrument that offers a potentially ...
  4. Exchange Traded Derivative

    A financial instrument whose value is based on the value of another ...
  5. Hedge Fund

    An aggressively managed portfolio of investments that uses leveraged, ...
  6. Real Estate

    Land plus anything on it, including buildings and natural resources.
  1. How are American Depository Receipts (ADRs) priced?

    Understand what American depositary receipts are and how they work, including how the price of ADRs is determined by the ...
  2. How are American Depository Receipts (ADRs) exchanged?

    Learn specifics about American depositary receipts, including how they are exchanged and some of their advantages and disadvantages.
  3. What are the main risks associated with trading derivatives?

    Understand derivatives trading and learn about the primary risks usually associated with trading in the derivatives market, ...
  4. What are the top high yield bond ETFs?

    Discover how high-yield bond ETFs are useful to investors, along with information about three of the most popular high-yield ...

You May Also Like

Related Tutorials
  1. Mutual Funds & ETFs

    Top ETFs And What They Track: A Tutorial

  2. Forex Education

    Investopedia Forex Outlook For February 2013

  3. Forex Fundamentals

    Investopedia's Forex Outlook For January 2013

  4. Forex Fundamentals

    Investopedia's Forex Outlook For December 2012

  5. Trading Strategies

    Key Ratios For Analyzing Oil And Gas Stocks

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!