Monday, December 15, 2008

With the price of commodities and commodities linked stocks having undergone devastating price decreases over the past half year, now might be a strange time to talk about their resurgence, yet the fundamentals today look better than they did even a month ago. The U.S. Dollar appears to have been knocked off its perch at the top of world currencies in a lasting way, as it has retreated significantly just in the past week. Not even mentioning the long-term growth in the world’s consumption of most natural resources, the weaker the dollar gets, the more expensive almost all commodities become, that is an unavoidable fact, something that bodes well for Russia. Oil is approaching 50 dollars a barrel, at least temporarily the talk has stopped about 25 dollar barrel oil. To assist large Russian companies get through short-term difficulties until the world economy stabilizes, the government has announced a formal plan to lend assistance to the 1,500 largest companies in Russia.

1 comment:

Anonymous said...

I bet Obama's arrival would bring some cold on $/euro gamblers. Those emotional $ fluctuations aren't for long and will stop when the N of troops and costs are down..