Lately, commodities such as Cruel Oil, Cruel Palm Oil and some base metals have undergone some serious correction. Rice Futures do also ride the correction wave. The question is now whether it is due for commodities to crash.
Sky high inflation is happening worldwide. A series of inflation has resulted Stagflation, a period of slow economic growth and high unemployment (stagnation) while prices rise (inflation).
If economy is as simple as one to one relationship, then the crash of commodities' prices would be translated into the release of inflation suffer throughout worldwide.
Indeed, economy effect is complex. George Soros did say the crash of commodity bubble will slump the world economy a few months back.
From technical aspect, the major correction of commodities lately is still too early to confirm the crash of commodity bubble.
We do hope fellow traders and investors share your comments here.
Sky high inflation is happening worldwide. A series of inflation has resulted Stagflation, a period of slow economic growth and high unemployment (stagnation) while prices rise (inflation).
If economy is as simple as one to one relationship, then the crash of commodities' prices would be translated into the release of inflation suffer throughout worldwide.
Indeed, economy effect is complex. George Soros did say the crash of commodity bubble will slump the world economy a few months back.
From technical aspect, the major correction of commodities lately is still too early to confirm the crash of commodity bubble.
We do hope fellow traders and investors share your comments here.
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